Professional Documents
Culture Documents
REPORT
V O LU M E 1
09
CONTENTS
09
REPORT
13 Finance and
Administration 92
14 APPENDIXES 98
The ADB Annual Report 2009 comprises two separate volumes: Volume 1 is the main report and Volume 2 contains the
financial statements and statistical annexes.
4 Asian Development Bank
The Record
($ million)
1966–2009 2006 2007 2008 2009
OPERATIONAL ACTIVITIES (A + B + C + D + E + F) 170,925 8,389 10,770 11,329 16,078
A. LOANS (amount) (1 + 2) 155,893 7,264 9,516 10,124 13,230
Number of Projectsa, b, c 2,205 64 77 81 93
1. Ordinary Capital Resources (OCR) Loans (amount) (a + b + c) 117,356 5,992 7,623 8,360 11,020
Number of Loans 1,299 33 55 57 64
Disbursements (amount) 80,400 4,420 5,234 6,472 7,898
a. Sovereign 112,182 5,542 6,972 6,839 10,577
Number of Loans 1,166 26 38 45 57
Disbursements (amount) 77,076 4,061 4,743 5,878 7,449
b. Nonsovereign Publicd 519 75 10 300 134
Number of Loans 6 1 1 2 2
Disbursements (amount) 85 1 30 54 –
c. Nonsovereign Private 4,655 375 640 1,222 309
Number of Loans 127 6 16 10 5
Disbursements (amount) 3,239 358 461 540 449
2. Asian Development Fund (ADF) Loans (amount) (a + b) 38,537 1,272 1,893 1,764 2,210
Number of Loans 1,264 44 36 35e 47e
Disbursements (amount) 29,317 1,338 1,618 2,043 2,201
a. Sovereign 38,522 1,272 1,893 1,764 2,210
Number of Loans 1,259 44 36 35e 47e
Disbursements (amount) 29,302 1,338 1,618 2,043 2,201
b. Nonsovereign Private 15 – – – –
Number of Loans 5 – – – –
Disbursements (amount) 15 – – – –
B. GRANTSc, f, g (amount) 5,191 530 673 809 1,113
Number of Projectsa, b, c 315 41 39 48 64
C. GUARANTEESb (1 + 2) 3,318 125 251 – 397
Number of Projects 29 3 3 – 2
1. Political Risk Guarantee (amount) 708 15 – – 325
Number of Projects 9 1 – – 1
2. Partial Credit Guarantee (amount) 2,610 110 251 – 72
Number of Projects 20 2 3 – 1
D. TRADE FINANCE FACILITATION PROGRAMh 1,000 – – – 850
E. EQUITYb, i (amount) 1,714 231 80 123 220
Number of Investments/Commitments 164 12 5 7 5
F. TECHNICAL ASSISTANCE GRANTSg (amount) 3,809 240 251 273 267
Number of Projectsa, b 6,863 259 239 298 313
COFINANCING (amount)
j
13,297 970 321 1,090 3,164
Number of Projects 221 14 7 7 14
Sovereign Operations (amount) 11,318 565 121 665 2,768
Number of Projects 188 10 6 5 10
Nonsovereign Operations (amount) 1,979 405 200 425 396
Number of Projects 33 4 1 2 4
– = nil.
Note: Totals may not add up because of rounding.
a Projects with multiple loans, or with combination of public and private lending are counted once. Cumulative number of projects excludes supplementary loans. Grant projects with multiple funds are counted once.
b Excludes terminated loans, equity, guarantees, technical assistance, and grants.
c Includes loans/grants arising from multitranche financing facilities.
d These are loans to companies in which public sector entities own more than 50% of the capital or over which they exert management control in other ways.
e Includes count for an earlier approved loan with supplementary financing in the current year.
f Includes ADF and other grants.
g Includes direct value-added cofinancing.
h Includes the $150 million approved in 2003 (OCR loan of $45 million and partial credit guarantee of $105 million).
i Refers to nonsovereign operations only.
j Starting 2006, cofinancing statistics indicate direct value-added cofinancing: cofinancing with administrative or collaborative arrangements with ADB.
k Includes cumulative effect of ASC 820/825 adoption amounting to $227.5 million, as an adjustment to the 1 January 2009 reserves.
l Cumulative resources excluding amounts not yet available for operational commitments.
m Net of $90.0 million that was transferred to Japan Fund for Poverty Reduction in 2002.
Annual Report 2009 5
Chapter 1
MESSAGE FROM THE PRESIDENT
T
he global economic crisis presented developing and quality of their food intake, withdraw children from
Asia and the Pacific with one of the most chal- school, or postpone health care.
lenging years since the 1997/98 Asian financial Against this backdrop, ADB shareholders agreed
crisis. Reduced demand for the region’s exports from the in April to triple ADB’s capital base from $55 billion to
major industrial economies, together with muted private $165 billion, the biggest increase in ADB history and the
consumption and investment in the region, cut growth first in 15 years, giving us the resources to pursue our
rates to about 5.2% in 2009, just over half the decade’s mission. The capital increase enabled ADB to respond
peak of 9.5% in 2007. quickly to the needs of developing member countries
Asia is leading the world’s recovery, with regional by significantly scaling up our assistance, with overall
growth expected to rebound to over 7% in 2010. operations growing by 42% from $11.3 billion in 2008 to
Heartening as this is, there remains an underlying $16.1 billion in 2009. Loan disbursements also reached
fragility to the recovery. Some economies are doing well a record high in 2009 at $10.1 billion compared with
but others are still struggling. External demand for the $8.5 billion in 2008.
region’s goods and services, including tourism, may be As the region continues on its path to recovery, it is
sluggish for some time until the advanced economies critical to ensure that growth is more inclusive and envi-
fully emerge from recession. Increasing resilience to future ronmentally sustainable. Regional integration must be
shocks, especially by building domestic and regional deepened to further increase the region’s resilience,
demand, will be essential to produce the high rates of connect more of its economies to global markets, and
growth needed to reduce poverty over the long term. spread the benefits of growth. The private sector must
While economic recovery is under way, ADB has esti- also be supported to help realize its key role in accelerat-
mated that 71 million people, who could have escaped ing growth and generating wider prosperity.
poverty if growth rates had stayed at 2007 levels, contin-
ue living on less than $2 a day; 54 million of them have
remained living on less than $1.25 a day. High unem- ADB looks forward to working
ployment and its social impacts are likely to be felt for
with shareholders and partners
several years to come, especially in poorer countries. The
crisis could have costly and long-lasting effects on human
to spread the benefits of recovery
welfare, as families with few alternative jobs and little more widely as the region emerges
or no access to credit are forced to reduce the quantity from a time of crisis
Annual Report 2009 7
President Kuroda visits one of more than a hundred ADB-assisted urban primary health care centers in Bangladesh, which benefit mainly women
and children
About 65% of ADB investments were allocated to ment Funds to support clean technology, climate
infrastructure, helping promote inclusive growth by resilience, forest protection, and renewable energy in
increasing access to important services and economic low-income countries.
opportunities. Many of our infrastructure projects promote Our overall operations of $16.1 billion in 2009
regional integration, and about 35% of ADB’s total 2009 comprised loans and grants of $14.3 billion, guaran-
investments supported environmental sustainability. tees amounting to $397 million, $850 million for a trade
About 81% of our total assistance in 2009 went to the five finance facilitation program, $220 million in equity
core operational areas of infrastructure, finance, educa- investments, and $267 million in technical assistance.
tion, environment, and regional cooperation. ADB also mobilized cofinancing amounting to $3.2
Alongside the global economic crisis, world lead- billion.
ers came together in Copenhagen in December to seek With the Asian Development Fund replenishment
solutions to the climate change crisis. While progress in 2008 and the general capital increase in 2009, ADB
was less than what many had hoped, leaders from both has a strong mandate to fully implement its long-term
the developed and developing world are embracing the strategy, Strategy 2020. The introduction of Our People
convergence among climate change, sustainable develop- Strategy in early 2010 will ensure that we have not only
ment, and human well-being. the financial but also the human resources to pursue our
ADB’s climate change and sustainable development important mission.
operations took a significant step forward. First, the ADB ADB looks forward to working with shareholders and
Board of Directors approved two major policies: the new partners to spread the benefits of recovery more widely
Energy Policy and the Safeguards Policy Statement. as the region emerges from a time of crisis, with renewed
Second, we have stepped up our financial and advisory determination to tackle the causes of poverty and raise
assistance. Our clean energy program, for example, has Asia’s standards of living, especially for the poor.
invested $2.8 billion over the last 2 years, investing in
renewable energy, energy efficiency, and clean technolo-
gy deployment that encourage our developing member
countries to move toward low-carbon energy generation Haruhiko Kuroda
and utilization. Third, ADB joined other multilateral President and Chairman
development banks in establishing the Climate Invest- Board of Directors
8 Asian Development Bank
BOARD OF DIRECTORS
Chapter 2
BOARD OF DIRECTORS
The ADB Board of Directors continued to play its vital role in overseeing operations,
guiding the institution as it responded to the economic crisis and worked to improve
T
he Board of Directors is responsible for the overall policy, which establishes limits for nonsovereign exposure,
direction of the operations of the Asian Develop- is designed to support the prudential expansion of private
ment Bank (ADB), including the approval of poli- sector operations without jeopardizing ADB’s credit
cies, loans, grants, and guarantees. As the representative rating.
of ADB’s shareholders, the Board plays a vital role in over- The Board also endorsed ADB’s new approach to
seeing ADB’s implementation of the guidance given by assisting the Pacific. Expressing concern on the impact
its shareholders. of global climate change on these small, developing coun-
The Board has provided inputs both directly and tries, the Board underscored the need for ADB to respond
from the member capitals to make ADB a more effective to this challenge within the special development context
Board of Directors
institution. As ADB expands its operations to meet the of the Pacific.
growing demands of its developing member countries, The Board continued to focus on reforms in key
the Board plays an active role in overseeing institution- areas to improve ADB’s institutional effectiveness and
al governance. The Board approved a number of key accountability to shareholders and beneficiaries. The
measures to improve ADB’s development effectiveness, Safeguard Policy Statement was approved, updating
responsiveness, and accountability. and superseding the Involuntary Resettlement Poli-
The meetings of the Board of Directors covered a cy (1995), the Policy on Indigenous Peoples (1998),
broad range of policy, financial, and administrative issues, and the Environment Policy (2002). The Board also
as well as a wide variety of projects and programs. The approved the new Energy Policy to meet Asia’s rapidly
Board also endorsed new partnership strategies with growing energy needs, facilitate a transition to a low-
several developing member countries. Total approvals carbon economy, and achieve ADB’s vision of a region
by the Board, including loans, grants, guarantees, trade free of poverty. In addition, the Board discussed the
financing facility, equity investments, and technical assis- 2008 Development Effectiveness Review, a key publication
tance, exceeded $16 billion. In addition, ADB mobilized intended to drive future action and ensure greater
more than $3 billion in cofinancing. accountability.
The Board approved the recommendation for a 200% With the aim of improving ADB’s internal operations,
general capital increase to the Board of Governors, a critical the Board established the Human Resources Committee
step in securing the funds needed to implement Strate- to oversee and provide guidance on ADB’s human resourc-
gy 2020 and address the global economic crisis. The fifth es management.
general capital increase was subsequently approved by the The Board also deliberated on ADB’s annual financial
Governors. statements, its budget and borrowing program for 2010, its
In response to the economic crisis, the Board support- Work Program and Budget Framework for 2010–2012,
ed several measures to assist ADB’s developing member and the salaries and benefits of staff. It also reviewed the
countries. It approved the establishment of the $3 billion 3-year rolling Work Program and Budget for 2010 of the
Countercyclical Support Facility as a short-term, budget ADB Institute.
support instrument for crisis-affected members with
access to ADB’s ordinary capital resources. The Board also
Country Partnership Strategies
approved the distribution of $400 million in additional
liquidity to ADB’s poorest members through the Asian The country partnership strategy maps out the ways
Development Fund (ADF). that ADB can most effectively work with its developing
With global trade shrinking and access to capital tight- member countries, given each country’s challenges and
ening, the Board approved an expansion of ADB’s Trade priorities. It also enables ADB to evaluate a country’s
Finance Facilitation Program to $1 billion. The program development performance over the strategy period.
increases the financing available for trade transactions to The Board endorsed six country partnership stra-
cushion the shock of the global downturn on developing tegies in 2009: Afghanistan (2009–2013), India (2009–
countries in Asia and the Pacific. 2012), Pakistan (2009–2013), Nepal (2010–2012), Palau
In line with the objective of Strategy 2020 to expand (2009–2013), and Vanuatu (2010–2014). It also endorsed
private sector operations, the Board approved a new expo- an interim country partnership strategy for Solomon
sure management policy for nonsovereign operations. The Islands (2009–2011).
10 Asian Development Bank
menting Strategy 2020, including support for achieving the assistance program evaluations were timely in informing
Millennium Development Goals, and delivering the level of the preparation of new country partnerships and strate-
assistance envisaged by the ninth replenishment of the ADF gies. The committee consistently strived to recommend
and the fifth general capital increase. The committee called ways to ensure that ADB operations would achieve devel-
for continuing efforts to achieve efficiency gains, and to reas- opment effectiveness.
sess and fine-tune the internal resource requirements in The committee met 11 times.
the coming years. The committee confirmed that the 2010
draft budgets for ADB, the Independent Evaluation Depart-
Ethics Committee
ment, and ADB Institute were consistent with the work
Board of Directors
plans and appropriate for consideration by the Board. The The Board established the committee to address matters of
committee also met in November 2009 to discuss the draft ethics that may arise under the Code of Conduct adopted
special capital budget proposal on the expansion of the by the Board in September 2006. The code provisions apply
ADB headquarters building and some resident missions. to all Board members (directors, alternate directors, and
The committee met 11 times. temporary alternate directors) and to the President.
The committee is responsible for advising directors,
alternate directors, and the President when they request
Compliance Review Committee
guidance on actual or potential conflicts of interest or other
The committee is responsible for clearing the terms of refer- ethical issues concerning themselves. The committee also
ence of the Compliance Review Panel and the time frame considers any allegations of misconduct against directors,
for conducting each compliance review authorized by the alternate directors, and the President that relate to the
Board, and clearing the panel’s draft reports on monitoring performance of their duties. It recommends appropriate
the implementation of any remedial actions approved by the action to the Board.
Board. The committee is mandated to meet as often as it The committee met once with the general counsel
considers necessary. in attendance to familiarize the new members with their
The committee met once to discuss its work plan responsibilities under the Code of Conduct and related
through 2010, the status of the Accountability Mechanism procedures.
review, and its annual report, as well as to obtain an update
from the panel on compliance review cases. The panel’s
Human Resources Committee
monitoring reports are available on the panel’s website
(www.compliance.adb.org). In June, the Board established the committee to review,
monitor, and make recommendations to the full Board on
ADB’s human resources strategy and policies, particularly
Development Effectiveness Committee
as they pertain to staffing, compensation and benefits, and
The committee discussed major evaluation reports by the other related issues. Members will also review any external
Independent Evaluation Department. These included evaluations of ADB’s human resources strategy and poli-
1 regional and 4 country assistance program evaluation cies and report their findings and recommendations to the
studies, 11 sector assistance program evaluation reports, and Board. These issues are considered vital to ADB’s ability to
4 special evaluation studies. Other department reports that recruit, train, and retain the highly qualified staff needed to
were discussed included two annual evaluation reports, one carry out its mandate under Strategy 2020.
project performance evaluation report, one impact evaluation The committee made recommendations on major
study, and one evaluation knowledge brief. The committee human resources initiatives such as the Our People Strategy
reviewed and discussed the 2008 Development Effectiveness and the Human Resources Action Plan. The committee
Review to feed into the full Board discussion of the review. also discussed other matters relevant to human resourc-
From its findings and recommendations in 2008 on es management, including gender, integrity and ethics,
ADB’s institutional effectiveness relative to its strategies, and accountability issues. The committee had separate
policies, and resources, the committee moved toward assess- introductory meetings with the Staff Council and the
ing ADB’s operations at the country and sector levels, and on Professional Women’s Committee.
crosscutting themes. The discussions of country and sector The committee met six times.
12 Asian Development Bank
BOARD OF DIRECTORS
PRESIDENT AND CHAIRMAN
OF THE BOARD OF DIRECTORS EXECUTIVE DIRECTORS
Haruhiko Kuroda
Md. Aminul Jose Yasuto Marita Govinda Richard Edwards Xiuzhen Guan
Islam Bhuiyan Miguel Cortes Watanabe Magpili-Jimenez Bahadur Thapa
MANAGEMENT
C. Lawrence Ursula Bindu N. Lohani Xiaoyu Zhao Rajat M. Nag Robert L.T.
Greenwood, Jr. Schaefer-Preuss Dawson
14 Asian Development Bank
Policy and Strategy Overview
Chapter 3
POLICY AND STRATEGY
OVERVIEW
Shareholders endorsed a tripling of ADB’s general capital, enabling ADB to pursue
longer-term development priorities in the region and substantially increase its support
to countries affected by the global economic downturn. In June, ADB approved the
new Energy Policy to better align energy operations with ADB’s long-term strategic
framework, Strategy 2020. The Safeguard Policy Statement to address environmental
and social impacts of ADB-supported projects was approved in July. It incorporates
international good practice and harmonizes with the policies of other multilateral
development banks. In October, ADB approved an exposure management policy
for nonsovereign operations to ensure that the growth in private sector operations
envisaged under Strategy 2020 remains within ADB’s risk-bearing capacity.
Annual Report 2009 15
Fifth General Capital Increase in a manner that encourages social, economic, and environ-
mental sustainability. Implementation centers on three
O
n 29 April, an overwhelming majority of ADB’s key pillars: promoting energy efficiency and renewable
67 member countries endorsed the fifth general energy; maximizing access to energy for all; and promoting
capital increase (GCI V), tripling ADB’s capital energy sector reform, capacity building, and governance.
base. The 200% increase is ADB’s largest and the first
since ADB increased its capital by 100% in 1994. GCI
V financially equips ADB to implement Strategy 2020, Safeguard Policy Statement
adopted in 2008, and to pursue longer-term develop-
ment priorities in the region. GCI V also allowed ADB On 20 July, ADB approved the Safeguard Policy Statement
to substantially increase its support to countries affected (SPS) governing environmental and social safeguards for
The country limit will vary according to the country’s private sector interventions in smaller countries.
credit rating. To ensure equitable access for all countries, ADB also established prudential limits for industry,
the country limit cannot exceed 10% of gross domestic prod- groups, single obligors, and counterparties, and intro-
uct, less sovereign (see Glossary) exposure. A minimum duced a definition of exposure that concurs with that
country allocation of $25 million will enable meaningful already established by ADB’s capital adequacy framework.
T
he global economic crisis presented developing Asia By 31 December, ADB had allocated $8.8 billion in
with one of its most difficult challenges in recent total crisis support for 43 projects, of which $7.0 bil-
times. The crisis spread to Asia mainly through col- lion (80%) was delivered in 2009. By source of fund,
Policy and Strategy Overview
lapsing demand for regional exports in major global mar- ordinary capital resources (OCR) provided $7.6 bil-
kets. Because a large portion of regional trade involves parts lion (87%) and ADF resources provided the remaining
and components supporting supply chains, imports also $1.2 billion (13%). By modality, program loans accounted
suffered steep declines. Weakening regional consumption for 40.1%, the Countercyclical Support Facility (CSF) pro-
and investments further compounded these problems, sub- vided about 28.5%, nonsovereign operations accounted
stantially reducing growth rates (5.2% forecasted in 2009) for 20.1%, and 11.3% came from sovereign project loans
from the decade’s peak of 9.5% in 2007. ADB estimates and grants. Crisis assistance concentrated primarily on quick-
that the regional decline in economic growth projected for disbursing budget support, and supporting public and pri-
2009 will cause 54 million and 71 million people to remain vate projects that generate employment and increase busi-
below the poverty threshold (at $1.25 and $2.00 a day, re- ness confidence. As of 31 December, total crisis-related dis-
spectively), compared with a “without crisis” scenario under bursement amounted to more than $4 billion.
which the high growth rate of 2007 would have continued.
This is a major setback to the fight against poverty. Countercyclical Support Facility
Mobilizing Additional Resources to Support In June, ADB established the $3 billion CSF. The new, time-
Emerging Development Needs restricted budget support instrument will support devel-
oping member countries eligible for borrowing OCR and
The timely completion of the fifth general capital increase help middle-income developing member countries sustain
and successful ninth replenishment of the Asian Develop- critical expenditures. Designed as a short-term lending in-
ment Fund (ADF X) in May 2008 enabled ADB to respond strument, the CSF complements conventional program
quickly to the needs of developing member countries af- loans that support longer-term structural reforms. The CSF
fected by the crisis. adopted access criteria to determine eligibility, and needs
Volume of ADB's Total Operations and Crisis Assistance Total OCR and ADF Crisis Assistance by Modality
($ million) ($ million)
17,011 Program
18,000 16,078 Nonsovereign
1,148 operations loans
16,000 (excluding
(including
14,000 TFFP and CSF)
11,329 7,020 other 3,520
12,000 guarantees, (40.1%)
615 and project
10,000 loans)
8,000 15,863 1,769
(20.1%)
6,000
10,714
4,000 9,058
2,000
OCR and ADF
0 project loans
2008 2009 2010 (Est) and grants
994
Regular ADB Program Crisis Assistance Total ADB (11.3%)
CSF
2,500
(28.0%)
and equity considerations to determine loan amounts. exposure supported $1.9 billion in trade, most of which
By 31 December, ADB had approved $2.5 billion in assis- occurred within the region. Much of ADB’s TFFP outstand-
tance to five countries (Bangladesh, Indonesia, Kazakhstan, ing portfolio is in Asia’s most challenging markets, includ-
the Philippines, and Viet Nam). Consistent with the quick-dis- ing Bangladesh and Pakistan. The program continues to
bursing nature of the facility, $2 billion (80% of the amount expand aggressively throughout developing Asia.
approved) had been fully disbursed by the end of 2009.
Strengthening Regional Cooperation, Policy
Additional Asian Development Fund Advice, and Knowledge Sharing
Commitment Authority
ADB also intensified its policy advice to developing mem-
Also in June, ADB approved an additional $400 million ber countries through technical assistance grants. Country
ADF commitment authority to help the most fiscally economic analysis and forecast for Asia and the Pacific were
Chapter 4
DELIVERING AN EFFECTIVE
ORGANIZATION
Through actions including stronger, more independent evaluation of its programs,
influential research underscoring its role as a regional knowledge leader, and better
management of human resources, ADB strove to increase the effectiveness of its
development programs. It bolstered its institutional relevance and performance
through a lasting commitment to the principles of good governance and sound
business practices in all operations.
Annual Report 2009 19
Progress on Aid Effectiveness Agenda to increase efforts to meet targets on using program-based
approaches and coordinating donor missions, and to under-
ADB made significant progress toward achieving most targets take joint country analytical work to meet the Paris Declara-
of the Paris Declaration on Aid Effectiveness. Concentrating tion targets by their 2010 deadline. In March, ADB launched
on the need to keep policies and programs in step with a joint donor initiative called the Capacity Development
those of developing member countries, ADB met targets for Facility for Development Effectiveness to help govern-
aligning aid flows with national priorities, coordinating tech- ments prepare localized action plans on the declaration.
nical support, and using country public financial management
systems. It is also on track to meet targets on the use of country
Ensuring Accountability and Compliance
procurement systems for national competitive bidding, on
reducing the number of parallel project implementation struc- The ADB Accountability Mechanism provides an inde-
tures, and for enhancing aid predictability. ADB will need pendent forum for people adversely affected by ADB-
Delivering an Effective Organization
ADB ADF
Performance Categories Operations Operations
Key Sector Outputs and Their Contributions
to Development Outcomes (Level 2) G G
Operational Effectiveness (Level 3)
Operational Quality and Portfolio Performance G G
Finance Mobilization G A
Gender Mainstreaming R R
Strategic Focus in Operations G G
Knowledge Management A A
Partnerships G G
Organizational Effectiveness (Level 4)
Human Resources A A
Budget Adequacy R R
Business Processes and Practices G G
Green: “On track” (More than 50% of indicators in the group have shown improvements over baselines or previous periods.)
Amber: “Potential regression” (Results are mixed: equal number of indicators improving or beginning to stagnate or regress.)
Red: “Stagnated or regressed” (More than half of indicators in the group stagnating or regressing over two or more previous
review periods)
ADB = Asian Development Bank, ADF = Asian Development Fund.
* ADF is a pool of funds available for financing ADB operations at concessional terms.
Annual Report 2009 21
assisted projects to voice complaints, report allegations began reporting directly to ADB’s Board of Directors, a
of noncompliance with ADB’s operational policies and review in 2008—which included extensive consultation
procedures, and achieve resolution. The mechanism with members of ADB’s staff, Management and Board
has two related phases: consultation conducted by the of Directors, and the Evaluation Cooperation Group
special project facilitator, and review led by the indepen- of other multilateral development banks—concluded
dent Compliance Review Panel. People who believe that that its evaluation functions could be made more effec-
they are, or may be, adversely affected by ADB-assisted tive. Accordingly, on 1 January 2009, it became the IED.
operations may bring a complaint to the special project This and other changes effectively minimized the role
facilitator to seek a resolution of the problem through of Management in selecting, appointing, and evalu-
consultation and facilitation. In certain circumstances, ating the performance of IED’s director general, thus
if the affected persons believe the alleged harm was the ensuring operational autonomy and protection from
result of ADB’s failure to comply with operational poli- outside influence. The changes also provided a greater
cies and procedures, they may ask that the panel review degree of autonomy in the recruitment of department
assessment of how ADB Management incorporates IED’s work program is rooted in Strategy 2020 and
the findings and recommendations of evaluations the ninth replenishment of the Asian Development Fund
into its decision making. The system provides wide (ADF). It takes into account ADB’s changing operating
electronic access to evaluation recommendations. It environment and promotes self-evaluation by operation-
also promotes ADB ownership and allows systemat- al departments and developing member countries. IED
ic tracking to help validate actions taken. To ensure increasingly turned to providing input into ADB policies
improved development effectiveness, IED high- and programs to ensure greater consistency with overall
lighted the importance of monitoring outcomes, strategy. Both higher-level evaluations on a regional scale
particularly after loans are closed. and the strengthening of self-evaluation within ADB’s
a water and sanitation project in Pakistan to be the project area enabled the scale of improvements to be
gauged, while highlighting where there was estimated and attributed more accurately.
The study compared a representative sample of 1,301
room for improvement
beneficiary households selected randomly from 115 com-
munities (10% of communities in the project areas) with a
A
DB-funded water and sanitation projects in comparison group of 1,301 randomly selected households
Pakistan’s Punjab province brought the welcome from 115 communities that were not part of the project.
benefit of freedom from an arduous task for one These two groups were well matched in terms of all key
schoolgirl. “I do not have to suffer from back pain and socioeconomic attributes except access to a potable water
headache from fetching water from outside. I can now go supply.
to high school and think about my future,” she says. It was found that ADB assistance greatly improved
The $38 million Punjab Rural Water Supply and access to drinking water and particularly benefited women
Sanitation Project, completed in 2003, improved conditions and girls, freed from the time and difficulty of carrying
for about 900,000 people in 335 communities; and the water from far-flung places. “My girls do not have to walk
$50 million Punjab Community Water Supply and Sanitation long distances to fetch water because it is available within
Project, completed in 2007, brought the same kind of the house. I am happy with water quality and availability,”
benefits to about 2.3 million people in 788 communities. said a woman from Faisalabad district.
An assessment by ADB’s Independent Evaluation De- The time and effort saved has resulted in 8.2% more
partment showed the sense of liberation felt by the girl in girls (14–17 years old) attending high school, and sig-
Rawalpindi and other districts, and improved the lives of the nificantly reduced the school dropout rate in the project
3.2 million people given access to clean water. areas, even among the poorest.
The department’s study measured the impact of Better access to safe water supply did not, however,
the projects on health, school attendance, labor force improve women’s participation in the workforce, nor
participation, and the hours worked. Comparisons with did it significantly reduce the incidence and intensity of
diarrhea. Rural water supply and sanitation projects focus
more on improving water access to the households, and
less on managing wastewater and solid waste.
The study concluded that the next step in project
design to improve the effectiveness of ADB investments
is to create synergies between water supply and the safe
disposal of waste water.
A
s a significant proportion of greenhouse gas (GHG) the share of clean energy projects in total energy sector
emissions originates from the energy sector, assistance increased from 26% to 43%, and energy sector
energy operations are critical to controlling pol- assistance to the private sector (without government
lution. At the same time, because of the vital role that guarantee) increased twelvefold. The review also
energy availability plays in economic development, ADB found ADB has increasingly emphasized GHG–efficient
assigns a high priority to investments in this sector. To investments in its energy sector portfolio.
address global concerns that GHG emissions accelerate The review found that in promoting investment in en-
climate change, both ADB’s Strategy 2020 and its 2009 ergy efficiency, ADB focuses more on energy sector enti-
Energy Policy require that ADB assist developing member ties rather than broad reforms of the entire sector. Scope
countries to put their economies on a low-carbon growth exists for ADB to assist developing member countries to
path. In particular, ADB is to help developing member cut the high cost of energy from renewable sources. This
countries improve energy efficiency, expand the use of can be done by helping developing member countries in-
energy derived from clean sources, reduce fugitive GHG troduce more appropriate technologies, encouraging lo-
within the office of the director general to provide quality 155% over 2008, and the survey confirmed improved
assurance services, improve and refine evaluation meth- organizational knowledge capacities, especially in devel-
odologies, and manage knowledge products. Finally, the oping and delivering client knowledge-based projects
department began developing a long-term strategy to 2020 and services and in creating a knowledge-sharing environ-
to ensure appropriate responses to the region’s develop- ment throughout the organization.
ment requirements that are likely to emerge. In response to requests from policy makers, ADB
Institute evaluated the impacts of the global crisis
Generating and Sharing Knowledge on Asia. The research recommended macropruden-
tial surveillance and regulation of the finance sector;
ADB’s Strategy 2020 underlined the importance of knowl- deepening of regional bond markets, including promo-
edge solutions as a driver of change. On 31 July, Presi- tion of rating agencies, and harmonization of issuing
dent Kuroda approved a comprehensive plan of action requirements, regulations, and tax regimes; a regime
to ensure that the organization’s knowledge products for monetary policy that takes account of asset price
Delivering an Effective Organization
and services remains of the highest quality, continues movements to avoid development of bubbles; great-
to expand, and is of practical use in developing member er liberalization of regional trade (including services)
countries. The plan is organized into four clusters. The and investment; development of an Asian infrastruc-
first focuses on adding value to ADB’s operations in devel- ture investment fund; stronger social safety nets and
oping member countries, and the other three deal with national pension systems; and policies and strategies
how to do it. The plan is designed to sharpen the knowl- to achieve low-carbon growth more cost-effectively and
edge focus in ADB’s operations, empower communities to lower trade barriers for green technology transfer.
of practice, strengthen external knowledge partnerships, ADB Institute’s distinguished-speaker seminar series
and enhance staff learning and skills. encouraged debate and knowledge sharing. At nine presen-
Several parts of the plan were launched in 2009, building tations, internationally known experts spoke on policy
on work started in the previous year. Measures for imple- and development issues, including reform of international
menting others were incorporated into ADB’s Work Program economic institutions, post-crisis issues facing Asia and the
and Budget Framework (2010–2012). In November, the Pacific, and United States trade policy toward Asia.
Regional and Sustainable Development Department began
to formulate a knowledge management results framework
Sharpening the Knowledge Focus in
to monitor and report on implementation.
ADB Operations
Toward the end of the year, ADB conducted its annu-
al Most Admired Knowledge Enterprise survey to gauge ADB leveraged its comparative advantages—expertise in
staff perception of how effective ADB was in manag- identifying trends in the region, capacity for interdisci-
ing knowledge in 2009. Staff participation increased by plinary and integrated approaches, and its ability to blend
knowledge and insight with large, concessional financing— To further monitor developments in the region, Asia
to generate and share operationally relevant knowledge. Capital Markets Monitor was launched. It is an annual report
At the regional level, the knowledge departments that reviews recent developments in Asia’s stock, bond,
generated and shared knowledge highlighting ADB’s and currency markets, along with their outlook, risks, and
stance on critical challenges in Asia and the Pacific. These policy implications. Asia Bond Monitor was launched as a
products, designed to help key regional stakeholders make quarterly publication to provide more timely analysis of
informed decisions and take positive action, received local-currency-denominated bond markets in the wake of
much coverage in the global media, reinforcing ADB’s the global financial crisis. The semiannual Asia Economic
image as a knowledge source. (See Appendix 14 for a list Monitor was published in July and December.
of ADB’s knowledge products.) At the country level, the knowledge departments
Asian Development Outlook 2009: Rebalancing Asia’s Growth produced diagnostics to mainstream in-depth analysis of
discussed the mix of actions that were undertaken in Asian binding developments in ADB country partnership strategy
economies to mitigate the effects of the global econom- formulation and improvements in project design. Exam-
Empowering the Communities of Practice The number of ADB-assisted water-related hubs grew
from 13 to 17. They offered innovative solutions in river
Communities of practice (CoPs)help generate and share basin management, climate change adaptation, water quality
knowledge, ultimately to the benefit of ADB’s clients. management, and irrigation service reforms. Seven regional
They keep know-how in sectoral and thematic domains knowledge hubs established in 2006 on clean energy; climate
alive by continuously sharing what they know, building on change; public finance; public–private partnerships; reduc-
it, and adapting knowledge to specific applications. ing, reusing, and recycling; sustainable development; and
ADB hosted CoPs on topics such as agriculture and regional trade and investment cooperation stood to complete
food security, education, energy, environment, finance, their deliverables in the first half of 2010.
gender, governance, health, regional cooperation, trans- Work on guidelines to design knowledge part-
port, urban development, and water. The year saw a surge nerships for collaborative advantage was initiated to
in support to CoPs, beginning with the first-ever survey strengthen existing partnerships and develop new ones.
to gauge factors contributing to their performance. Next Country diagnostics were developed in partnership
Delivering an Effective Organization
came interventions to fill gaps and boost effectiveness— with the United Kingdom’s Department for Internation-
including significant budget increases, streamlined al Development and Department of Foreign Affairs, the
guidelines on sector and thematic reporting, a brain International Labour Organization, the Islamic Devel-
storming session toward a forum on learning, and an opment Bank, the United Nations (UN) Economic and
inaugural year-end gathering to give in-house CoPs a Social Commission for Asia and the Pacific, and relevant
chance to highlight their accomplishments and exchange government agencies. The Workshop on Challenges in
lessons. Managing National Statistical Systems was held in collab-
CoPs contributed to key ADB documents, among oration with the Food and Agriculture Organization of the
them the Operational Plan for Sustainable Food Secu- UN. ADB signed a milestone agreement with the National
rity and Sustainable Transport Initiatives and Action University of Singapore’s Lee Kuan Yew School of Public
Plan. They also undertook numerous regional studies Policy to exchange information, knowledge, and staff.
in aid of project design and implementation, including ADB Institute served as a forum for Asian think tanks
rapid gender assessments in four developing member to forge recommendations for East Asian countries partici-
countries, market analysis and project identification for pating in the G20 London Summit. The forum called for
nonsovereign lending in urban infrastructure in the People’s collective action in East Asia and encouraged the US and
Republic of China, and an assessment of the community Europe to improve their fiscal and financial health.
impact of environmental infrastructure in Pakistan. About 1,500 people, two-thirds of whom were govern-
Outreach to stakeholders also gained firmer footing, ment officials from developing member countries, attended
with CoP members providing advice on projects managed 31 ADB Institute capacity-building events. The events tack-
by their peers (e.g., the Viet Nam Mong Duong 2 Power led public–private partnerships in infrastructure, water
Plant), and CoPs as a group forging stronger links with resource management, climate change adaptation, capital
development partners (e.g., the Clean Air Initiative for market reforms, trade facilitation, eco-industrial clusters, the
Asian Cities). Finally, the CoPs broadened ADB’s knowl- Millennium Development Goals, and competition policies.
edge base by producing a long list of knowledge products, The Organisation for Economic Co-operation and
including good-practice studies on education, tool kits Development and ADB Institute’s 10th Roundtable on
for urban transport development, and e-newsletters and Capital Market Reform in Asia debated the causes of the
video documentaries on water. global financial crisis, and the impact on and implications
for capital market development in Asia.
Strengthening External
Knowledge Partnerships Enhancing Staff Learning and Skills
ADB shares insights from its development practices and The ability of staff to learn is a precondition to the
benefits from knowledge generated by others. Knowl- success of Strategy 2020. Beyond updating technical
edge hubs are important conduits. and professional skills, staff must also acquire and
Annual Report 2009 27
master methods and techniques for knowledge manage- ledge management and learning. Success stories
ment and learning. showcasing accomplishments were publicized, and
Several needs-based learning programs were conducted. other instructive and informative materials were
Among many others, these included economic analysis for disseminated. Learning for Change in ADB—which
investment-based lending, climate change and financing for illustrates how the parameters of a learning organi-
ADB operations, and Islamic finance. The customized nature zation are defined and discusses how ADB can over-
of the courses gave staff members new skills, from simulat- come key challenges—attracted worldwide attention.
ing climate change and its economic impacts to performing Brochures, posters, bookmarks, and digital signage sent
econometric analysis using state-of-the-art software. out messages on the value of managing knowledge.
The Regional and Sustainable Development Depart- Dissemination of knowledge products took tradi-
ment developed six courses, dubbed Learning for Change tional and modern paths. Aside from direct distribution
Primers, to help raise in-house capacity to leverage knowl- to clients, audiences, and partners, and advertising
edge with information technology, grasp the essentials of through launches, press conferences, media interviews,
InfoUnit responded to all external requests in 4 days on from the country partnership strategy process and merged
average, the maximum time limit allowed by the policy with ADB’s knowledge management functions. This will
being 30 days. permit more demand-driven analytical work to be carried
out with the participation of development partners.
Loan delivery reforms included a single concept
MAKING THE MOST OF clearance process (combining project preparatory tech-
ADB RESOURCES nical assistance and loans), the further merging of the
project preparatory phase with loan processing, and
enhanced quality assurance through a risk-based project
Improving Human Resources Management
categorization of operations (including greater manage-
ADB shows its commitment to institutional effectiveness ment and peer scrutiny of complex projects). Still other
by continually improving human resources management. reforms included more strategic and sector-focused peer
The 2008 comprehensive review of the human resources review; better use of the project administration manual in
Delivering an Effective Organization
strategy (2005–2007) underscored the importance of project design, readiness, and implementation; and the
linking ADB’s human resources management to its busi- introduction of indefinite delivery contracts to mobilize
ness to support and deliver Strategy 2020’s required the expertise of consultants. These are expected to halve
results. The findings of the review and the 2008 staff the average time for processing loans.
engagement survey were combined to develop a detailed,
time-bound human resources action plan. Its priority
Strengthening Risk Management
was the development of a new strategy on which to base
workforce planning for successful implementation of The Risk Management Unit was upgraded to the Office of
Strategy 2020, taking into account projected growth in Risk Management on 1 October. The expanded role will
the number of staff from 2010 to 2012 that the fifth bring ADB into line with best market practice, including
general capital increase will finance. Our People Strategy those of other multilateral development banks, and ensure
was drafted and circulated to the Board of Directors for greater efficiency and effectiveness of ADB’s operations.
discussion. An equally important section of the plan In conjunction with the review of ADB’s policy on
consists of measures to strengthen the human resources exposure limits for nonsovereign operations (Review of
function (Finance and Administration, p. 92). Exposure Limits on Nonsovereign Operations, p. 15),
ADB introduced a new risk-rating methodology for non-
sovereign operations. This assigns loans to categories based
Streamlining Business Processes
on a complete assessment of credit risk and will help ADB
ADB completed an assessment of its business processes. gauge the potential losses and amount of capital needed
The work aimed to improve efficiency and streamline to be set aside for absorbing expected and unexpected
processes without sacrificing quality in two areas: the losses. As well as allowing for improved management of
country partnership strategy and loan delivery. Working credit risks in ADB’s nonsovereign loan and guarantee
groups were established to consider options for stream- portfolios, the methodology applies a system for consid-
lining documentation and reducing complex pro- ering credit risk when pricing new transactions, and adds
cessing steps and reviews. Their recommendations were to efficiency by standardizing credit processes. Work is
approved by Management in November. also under way to develop an integrated risk management
ADB is refocusing its country partnership strategies system that will provide an information technology plat-
on the points where a country’s development plans and form to monitor and manage risk more efficiently.
Strategy 2020 intersect. This will better align ADB
resources with the national strategic planning cycle. Other
Audit
improvements in ADB’s strategies included enhanced
review processes through peer group assessments ADB’s loan, grant, and technical assistance operations
and the creation of a single documentation platform. are audited independently by the Office of the Auditor
In-depth sector and thematic evaluations were unbundled General (OAG). The office also conducts audits of finan-
Annual Report 2009 29
cial, accounting, risk management, and administrative ing recommendations, with an emphasis on high-risk
processes, and information systems. Risk assessment is at recommendations.
the heart of the audit process, which is geared to strength-
ening internal controls and governance, and ensuring Integrity and Anticorruption Activities
compliance with ADB policies, procedures, and regula-
tions. The audits achieve improvements in the effective- ADB separated its Integrity Division from OAG and
ness, efficiency, and economy of operational, financial, established the Office of Anticorruption and Integrity
administrative, and information technology activities. (OAI) in October to ensure independence and impar-
OAG also works with Deloitte and Touche Singapore, tiality in investigations and other activities pursuant to
ADB’s newly appointed outside auditor, to ensure effec- ADB’s Anticorruption Policy. OAI serves as the recep-
tive transition and proper coordination of audit activities. tion point for allegations of fraud and corruption in
Formalized principles for the selection of the outside ADB-financed activity. It is responsible for conducting
auditor are under discussion with the Audit Committee independent and objective investigations of fraud and
Chapter 5
SECTOR AND THEMATIC
HIGHLIGHTS
ADB strengthened strategies and safeguards to support efforts of the entire
organization and development partners to facilitate sustainable and inclusive
economic growth. A new Energy Policy promoted the transition to a low-carbon
economy, putting the environment at the heart of infrastructure investments. At
a time of stress for Asia and the Pacific, ADB helped governments and the finance
sector to better serve people and responded to growing demand for assistance in
higher education. Strategies helped steer developing member countries toward
achieving the Millennium Development Goals, and to mainstream gender equality
into policies and programs.
Annual Report 2009 31
S Sustainable Infrastructure
trategy 2020 envisions ADB operations focusing on
a handful of priority sectors and thematic areas
that align best with the long-term agenda for Energy. ADB approved a new Energy Policy to promote
inclusive growth. These priorities take into account the energy security, universal access, and the transition to a
current needs of developing member countries but low-carbon economy.
remain adaptable to demands and challenges yet to come. The Energy Efficiency Initiative—the main vehicle
ADB has mobilized its resources and strengthened its for increasing investments in clean energy to $1.0 billion
support to meet this agenda. a year—was completed, with ADB’s investments reach-
ing $2.8 billion over the last 2 years. Redubbed the Clean
Energy Program, it monitored the extent to which ADB’s
CLIMATE CHANGE clean energy investments reduced greenhouse gas emis-
sions, saved kilowatt-hours, and produced megawatts from
ADB further strengthened its capacity to support devel- renewable energy sources.
oping member countries in meeting climate change
challenges. ADB engaged an advisory group of interna Transport. ADB’s Sustainable Transport Initiative
lending, with 20 loans totaling $2.3 billion approved education and training, and cost sharing and financing
in 2009. The Cities Development Initiative for Asia, in higher education. ADB also launched a regional study
supported by Germany, Spain, Sweden, and the Nordic and capacity development project, Higher Education in
Development Fund, with operations in 16 countries, Dynamic Asia.
leveraged resources with cofinancing and partnerships
with private sector operations to approve programs and Health. ADB focused on areas where its skills and experi-
pre-feasibility studies in 11 cities. The Urban Financing ence are bringing the greatest benefits: water and sanitation
Partnership Facility, designed to provide investment infrastructure projects; governance and public expendi-
cofinancing for environmental infrastructure, and ture management in health programs in the Lao People’s
initially supported by Sweden with $85 million in grants Democratic Republic, Mongolia, and the Philippines;
and guarantees, was approved. waste management in Bangladesh; and evidence-based
advocacy and policy support in collaboration with other
development partners. With the United Nations Chil-
Finance and Governance dren’s Fund (UNICEF) and others, ADB helped develop
an investment case for maternal, newborn, and child
Sector and Thematic Highlights
Finance sector development. Finance sector develop- health; with the Joint United Nations Programme on
ment lending amounted to $410 million, or about 6% of HIV/AIDS (UNAIDS), the regional data hub for targeted
total lending. The loans supported general finance sector interventions in HIV programs was further developed; and
and capital market development, and finance infrastruc- with the World Health Organization (WHO) and the World
ture development for small and medium-sized enter- Bank, ADB initiated the Asia Pacific Health Observatory.
prises, infrastructure, and housing. ADB strengthened its partnership with the Association of
Most technical assistance for finance sector develop- Southeast Asian Nations and with the United Nations tech-
ment supported the preparation of lending programs or nical agencies (the Food and Agriculture Organization and
projects; the remainder backed collective efforts by devel- the WHO) to develop regional collaboration and capacity to
oping member countries to promote regional economic and prevent and control infectious diseases. Asia was well
financial integration, international standards, and sound prepared when the H1N1 pandemic hit the region.
practices.
Millennium Development Goals. Taking into account
Governance. Under the Second Governance and the 2015 deadline for the United Nations Millennium
Anticorruption Action Plan, ADB neared completion of Development Goals (MDGs) and the global economic
its risk assessments for several countries, focusing slowdown, ADB committed $1.5 million to monitor and
on public finance management, procurement, and accelerate the achievement of MDGs in its developing
anticorruption policies. ADB supported the Capacity member countries.
Development for Development Effectiveness Program, Working with the Economic and Social Commission
designed to help governments of developing member for Asia and the Pacific (ESCAP) and the United Nations
countries implement capacity development policies to Development Programme (UNDP), ADB finalized its
further the Accra Agenda for Action.
Human Development
Education. ADB responded to growing demand from
developing member countries for assistance in educa-
tion with the establishment of Focus on Education,
a series of knowledge products that includes reports
on good practice in information and communication
technology for education, technical and vocational ADB supports equal-opportunity education in Indonesia
Annual Report 2009 33
2009 MDG progress report, which discusses the effects Other key activities included protecting critical biodi-
of the global economic slowdown on MDGs and recom- versity in the Greater Mekong Subregion; financing and
mends ways to prevent backsliding. ADB also discussed implementing a marine conservation program in the Coral
the need for social protection in developing member Triangle, source of food and income for about 120 million
countries with programs on social assistance, conditional people; and supporting the Heart of Borneo Initiative to
cash transfers, and community-driven development. preserve the largest remaining forest in Southeast Asia.
ADB also approved its Safeguard Policy Statement (see
Gender mainstreaming in ADB operations. ADB set Policy and Strategy Overview, p. 15).
targets to achieve “gender mainstreaming”—the inclu-
sion of gender-related analyses in program and project
design—in 40% of public sector projects and in 50% of Crosscutting Initiatives
Asian Development Fund (ADF) projects by 2012. It
established the interdepartmental Technical Working Agriculture and food security. ADB approved seven
Group on Gender Mainstreaming to find ways to achieve loans for agriculture and natural resources, totaling $443
the targets and reverse the retrogression of recent years. million. Its non-loan fund of $154 million attracted
Chapter 6
FINANCING OPERATIONS
ADB raised $10.4 billion in public bond issues and private placements. ADB
approved a total of $16.1 billion in financing operations through loans, grants,
guarantees, a trade finance facilitation program, equity investments, and technical
assistance—a 42% increase from 2008. Loan cofinancing amounted to about
$3.2 billion. Resources of $6.0 billion were transferred from ADB to its developing
member countries, compared with $4.3 billion in 2008.
Annual Report 2009 35
A
uthorized and subscribed capital stock amounted 5-year (2009–2013) strategic partnership to fight pover-
to $166.2 billion and $60.8 billion, respectively. ty in India, and $85.8 million, including $13.8 million in
Other resources in ordinary capital resources grants, by Sweden for a multidonor Urban Financing Part-
(OCR) in the form of gross income, comprising revenue nership Facility. Commitments to existing trust funds
and net realized gains, amounted to $1.5 billion, $1.0 amounted to $170.3 million, of which Japan pledged $100.0
billion of which was generated from the loan portfolio, million to enhance the Japan Fund for Poverty Reduction
$489.8 million from the investment portfolio, and $45.2 initiatives, which aim to support projects and technical
million from equity investments and other sources. assistance that address the effects of the financial crisis.
Resources in the form of contributions and revenue In addition, the establishment of the Clean Technology
attained during 2009 in ADB’s Special Funds totaled Fund and Strategic Climate Fund under ADB adminis
about $4.4 billion. These included the Asian Develop- tration was approved.
ment Fund (ADF) of $4.0 billion, Technical Assistance
Special Fund of $313.7 million, Japan Special Fund of
$1.2 million, ADB Institute Special Fund of $8.5 million, FUNDING
Asian Tsunami Fund of $0.9 million, Pakistan Earthquake
Fund of $2.3 million, Regional Cooperation and Inte- ADB raised $10.4 billion in medium- and long-term funds
gration Fund of $0.4 million, Climate Change Fund of through public bond issues and private placements. Public
$0.4 million, and Asia Pacific Disaster Response Fund of offerings amounted to $7.7 billion and private placements
Financing Operations
$40.1 million. totaled $2.7 billion. Of the public offerings, $4.0 billion
Additional resources of 2009 commitments to trust was raised through two US-dollar global benchmarks.
funds, comprising commitments for three new trust
funds and replenishments of existing trust funds, totaled
$296.3 million. The commitments to three new trust OVERVIEW OF OPERATIONS
funds amounted to $126 million, including $17.2 million
by Australia to establish the Carbon Capture and Stor- ADB approved a total of $16.1 billion in financing opera-
age Fund under the Clean Energy Financing Partnership tions (Table 2). These included 111 loans (93 projects)
Facility, $23 million by the United Kingdom for a new for about $13.2 billion, 64 grants for $1.1 billion, two
guarantees for $397 million, one trade finance facilita-
tion program for $850 million, 5 equity investments for
Table 2 ADB Financing Operations at a Glance
($ million) $220 million, and 313 technical assistance projects for
2008 2009 Change (%) $267 million. Top recipients of financing operations are
Loans provided in Table 3.
OCR 8,360 11,020 32
ADF 1,764 2,210 25
10,124 13,230 31
Grants
ADF Grants 707 911 29
Other Grants 102 202 98
809 1,113 38
Guarantees 397
ADB approved a total of
Trade Finance Facilitation
Program 850 $16.1 billion in financing
Equity 123 220 79
operations through loans, grants,
Technical Assistance
TOTAL
273 267
11,329 16,078
(2)
42
guarantees, a trade finance
Memorandum Item facilitation program, equity
Cofinancing 1,090 3,164
ADF = Asian Development Fund, OCR = ordinary capital resources. investments, and technical
Note: Totals may not add up because of rounding.
assistance projects
36 Asian Development Bank
$12.8 billion approved in 2009 loans for $328.8 million. Overall, sovereign lending of
increased by 48.6% compared with $12.8 billion approved in 2009 increased by 48.6%
$8.6 billion approved in 2008 compared with $8.6 billion approved in 2008 (an
increase of 54.7% for OCR and 25.3% for ADF lending).
Two nonsovereign public sector loans to state-owned
enterprises for $134.3 million were approved. Five
LOANS nonsovereign loans (5 projects) to the private sector for
Of the $13.2 billion in loans, sovereign lending amounted $308.6 million were also approved—74.7% less than the
to $12.8 billion for 104 loans (86 projects/programs), $1.2 billion for 10 loans (9 projects) in 2008.
comprising 57 loans from ADB’s OCR for $10.6 billion, Of the 93 projects and programs approved in 2009,
and 47 loans from ADF for $2.2 billion. These amounts 67 (72.8%) were general interventions and 25 (27.2%)
include about $3.4 billion—pursuant to periodic financing were targeted interventions (excluding one project with
Syndications 0.0 200.0 200.0 0.0 425.0 425.0 0.0 276.2 276.2
Commercial Loansb 0.0 0.0 0.0 0.0 0.0 0.0 0.0 120.0 120.0
Official Loans 120.5 0.0 120.5 664.6 0.0 664.6 2,768.0 0.0 2,768.0
Total 120.5 200.0 320.5 664.6 425.0 1,089.6 2,768.0 396.2 3,164.2
Note: Totals may not add up because of rounding.
a Comprising direct value-added loan cofinancing for projects, i.e., those with administrative or collaborative arrangements with ADB. Net of cancellations.
b Collaborative cofinancing under a framework agreement.
Syndications 0 1 1 0 2 2 0 3 3
Commercial Loans
b
0 0 0 0 0 0 0 1 1
Financing Operations
Official Loans 6 0 6 5 0 5 10 0 10
pre-2004 targeting classification). Economic growth was Of the 64 grant projects, social development was
the most common theme and was associated with 76 proj- the most common theme, associated with 42 projects.
ects. Public sector management received the largest share Transport and information and communication tech-
of lending (40.1%) by sector (Table 4). nology received the largest share among the sectors
Of the 93 projects and programs, the 70 projects (31.9%).
amounted to $7.3 billion and the 23 programs totaled
$5.9 billion. The project lending included nine sector
projects amounting to $567 million, compared with four GUaraNTEES
sector projects amounting to $279 million in 2008. Poli-
cy-based program lending, excluding programs financed Two guarantee operations for $397 million were approved
under the Countercyclical Support Facility amounted to in 2009 (Table 3).
$3.4 billion. This constituted a 38.3% increase, compared
with $2.49 billion in 2008.
TRADE FINANCE
FACILITATION PROGRAM
GRANTS
ADB approved additional trade financing commitment
ADB approved 64 grant projects for $1.1 billion in 2009. for $850 million, which increased the total exposure limit
Of this amount, $911 million was funded from ADF, of the Trade Finance Facilitation Program to $1 billion.
$13 million from ADB’s Special Funds, and $189 million In partnership with numerous commercial banks from
from external sources with full or partial administration both developing and developed countries, the program in
by ADB, comprising $35 million from the Japan Fund for 2009 supported $1.9 billion in trade transactions in Asia
Poverty Reduction, and $154 million from other bilateral (see Thawing the Big Credit Freeze, p. 89, for the
and multilateral sources. program’s impact).
38 Asian Development Bank
Nonsovereign Loans 450 650 1,522 443 China, People’s Republic of 2,188 20.4
– Private sector 375 640 1,222 309 India 2,129 19.8
– Public sector 75 10 300 134 Indonesia 919 8.6
Equity 230 80 123 220 Philippines 768 7.2
Pakistan 721 6.7
Partial Credit Guarantee 110 251 – 72
Political Risk Guarantee 15 – – – Thailand 395 3.7
Kazakhstan 375 3.5
Trade Finance Facilitation
Program – – – 850 Sri Lanka 280 2.6
Viet Nam 280 2.6
Total Nonsovereign Approvals 805 981 1,645 1,585
Bangladesh 242 2.3
– Private sector 730 971 1,345 1,451
– Public sector 75 10 300 134 Afghanistan 198 1.8
Lao People’s Democratic Republic 100 0.9
Memorandum Items
Cofinancing (B-Loans) 330 200 425 276 Azerbaijan 66 0.6
– Private sector 105 200 200 220 Nepal 59 0.5
– Public sector 225 – 225 56 Georgia 25 0.2
Total Project Cost 7,678 3,485 9,992 4,506 Papua New Guinea 25 0.2
– = nil. Regional 1,895 17.7
a Includes nonsovereign projects processed by the Private Sector Operations Department Other DMCs 62 0.6
and various regional departments of ADB. Regional departments started nonsovereign
Financing Operations
operations in 2007.
Total 10,728 100.0
b Net of facilities cancelled in full before signing. DMC = developing member country.
Note: Totals may not add up because of rounding.
a Includes nonsovereign projects processed by the Private Sector Operations
Department and various regional departments of ADB. Regional departments
EQUITY OPERATIONS
started nonsovereign operations in 2007.
b Net of facilities cancelled in full before signing.
ADB establishes framework cofinancing agreements Cumulative nonsovereign operations are largest in
with its cofinanciers to effectively create a pipeline of the People’s Republic of China (20.4%), followed by India
future cofinancing operations. Such a programmatic (20%), followed by Indonesia (9%), and the Philippines
approach to cofinancing gives predictability to ADB’s (7%). Regional projects account for roughly 18% of the total
cofinancing operations, moves cofinancing upstream, and (Table 7).
allows the use of standardized, project-specific cofinanc-
ing agreement templates that streamline cofinancing
operations. By the end of 2009, six framework agree- RESOURCE TRANSFERS
ments were in effect, the total value of which amounted
to approximately $9 billion over the coming 2–3 years. In During the year, there was a net transfer of $6.0 billion
2009, ADB signed a framework cofinancing agreement from ADB to its developing countries, compared with
with the Export–Import Bank of China for $1.5 billion $4.3 billion in 2008. Of these, net resource transfers of
over 3 years for the cofinancing of infrastructure projects. $4.9 billion went to OCR borrowers and/or investors in
2009, compared with $3.2 billion in 2008 (Table 8). The
four countries with the largest net resource transfers
TECHNICAL ASSISTANCE were India, Viet Nam, the Philippines, and the People’s
OPERATIONS Republic of China.
Loan disbursements totaled $10.1 billion compared
Financing Operations
A total of 313 technical assistance projects for $267.2 with $8.5 billion in 2008. Of the total, OCR disbursements
million, including 267 new and 46 supplementary proj- were $7.9 billion or 78% and ADF disbursements were
ects, was approved, or 2.2% less than the 298 projects for $2.2 billion, or 22%. Loan service payments totaled
$273.2 million approved in 2008. Of the 313 technical $4.1 billion in 2009 compared with $4.3 billion in 2008.
assistance projects, 88 are project preparatory, 114 are
capacity development, 71 are policy and advisory, and 40
are research and development.
NONSOVEREIGN OPERATIONS
ADB approved a total of 12 financial markets and infra-
structure nonsovereign projects, providing about
$1.6 billion in assistance (Table 6). The interventions
comprise five private sector loans of $309 million; two
public sector nonsovereign loans of $134 million; five
equity investments of $220 million; a credit guarantee of
$72 million and, as mentioned above, an increase in the
total exposure limit of the Trade Finance Facilitation
Program by $850 million to $1 billion in 2009.
As of 31 December, the total outstanding balances
and undisbursed commitments of nonsovereign opera-
tions amounted to about $4.5 billion, consisting of loans
of $2.6 billion, $1.1 billion in equity investments, and
guarantees of $740.0 million. ADB’s nonsovereign expo-
sure is largest in the infrastructure sector, with a total
of $ 2.7 billion, followed by the finance sector with expo-
sure of $ 1.7 billion, and other sectors with exposure of
A power station in Pakistan, aimed at harnessing the power of the
$70.0 million. private sector, goes up with ADB support
40 Asian Development Bank
Central and West Asia
Annual Report 2009 41
Chapter 7
CENTRAL AND
WEST ASIA
A
DB strategy highlights transport and logistics, way for longer term partnerships and faster approval. Total
energy security and efficiency, urban services multitranche financing in 2009 reached almost $3 billion.
(water, wastewater, and urban transport), and
reforms (government efficiency, access to credit, and
capital markets development). The strategy is delivered Regional Cooperation
through transactions structured around debt and equity
finance, guarantees, and grants. Accompanying tech- The Eighth Ministerial Conference on Central Asia
nical assistance grants train clients in planning, project Regional Economic Cooperation (CAREC), held in
management, monitoring, evaluation, and reporting. Ulaanbaatar, Mongolia, deepened cooperation among
Regional cooperation, environmental sustainability, CAREC countries (Afghanistan, Azerbaijan, the People’s
climate change, and gender are emphasized. Republic of China, Kazakhstan, the Kyrgyz Republic,
Disbursements rose to $2.2 billion (Table 10). New Mongolia, Tajikistan, and Uzbekistan). The conference
lending for public sector projects and reforms reached endorsed an action plan for the energy sector and agreed
$3.1 billion. on the establishment of a comprehensive results frame
work for the CAREC program. A yearly effectiveness
report will become a standard feature of the program.
Portfolio Performance ADB approved a flagship regional transport
project—a new railway line connecting Hairatan in
Central and West Asia
More effective project management resulted from coop- Uzbekistan to Mazar-e-Sharif in Afghanistan. This initi-
eration between client and ADB teams, supported by ated a three-phase program to develop a rail network
an improved management information system covering
project performance. A “no extension” policy on poorly
performing projects ensured timely, within-budget project ADB approved a flagship regional
execution. Portfolio performance also benefited from transport project—a new railway
clearer readiness filters, simplified design, and advance line connecting Uzbekistan to
actions on procurement, safeguards compliance, and
Afghanistan. This will connect
timely counterpart finance. ADB continued to rely on
programmatic financing approaches, using multitranche Central Asia to ports in South Asia
financing facilities and cluster program loans. The analyt- and the Caucasus
TABLE 9 Central and West Asia: Grant-Financed Project Approvals by Country, 2009
($ million)
Other
Country ADF Sourcesa Total
Afghanistan
Hairatan to Mazar-e-Sharif Railway 165.0 – 165.0
Water Resources Development Investment Program – Tranche 1 86.6 3.3 89.9
Energy Sector Development Investment Program – Tranche 2 81.5 – 81.5
Kyrgyz Republic
CAREC Transport Corridor 1 (Bishkek–Torugart Road) Project 2b 22.0 – 22.0
Issyk-Kul Sustainable Development 13.5 – 13.5
Tajikistan
Crisis Recovery Support Program 40.0 – 40.0
Dushanbe–Kyrgyz Border Road Rehabilitation (Phase II) (Supplementary)b 20.0 – 20.0
Regional Customs Modernization and Infrastructure Developmentb – 1.6 1.6
TABLE 10 Central and West Asia: Portfolio Performance Indicators for Sovereign Lending, 2008–2009
Contract Awards/
Commitments Disbursements Loans at Risk
Ongoing Loans
as of 31 Dec 2009 2009 2008 2009 2008 2009 2008
Country (no.) ($ million) ($ million) ($ million) ($ million) (%) (%)
Afghanistan 11 37.1 53.2 74.3 51.8 18.2 9.1
Armenia 4 117.0 23.0 119.1 8.0 – –
Azerbaijan 10 149.0 31.8 58.5 20.8 – –
Georgia 3 111.1 69.9 111.4 69.9 – –
Kazakhstan 3 700.9 10.6 542.5 8.3 – –
Kyrgyz Republic 7 14.1 9.6 24.0 27.1 – 28.6
Pakistan 42 1,178.9 1,799.7 1,093.3 1,873.2 21.4 16.1
Tajikistan 11 40.5 66.8 67.1 50.0 – 7.7
Uzbekistan 20 137.8 58.7 125.9 49.0 – –
Total 111 2,486.3 2,123.3 2,216.1 2,158.1 9.9 10.8
– = nil.
Note: Totals may not add up because of rounding.
gateway for half of Afghanistan’s imports and for human- Impact of operations. In response to the government’s
itarian relief goods. This is the beginning of a network request, the $80 million crisis recovery loan was quickly
linking to Herat, Tajikistan, and Pakistan. In addition, prepared, approved, and disbursed, helping meet social
with support by ADB and other donors, the North East expenditures and implement anti-crisis measures.
Power System was commissioned. This serves Kabul
and other cities, stimulating economic growth and job
Azerbaijan
Central and West Asia
creation.
Partnership priorities. ADB focuses on transport,
energy, and urban services. Three transport projects were
Armenia
funded, two of them under the $500 million multi
Partnership priorities. ADB’s engagement with tranche financing facility for roads. In the water sector,
Armenia expanded beyond rural transport and water ADB approved a $600 million facility targeting secondary
supply with the approval of a $500 million multitranche towns, benefiting 500,000 residents. ADB’s cooperation
financing facility (see Glossary) for a regional transport in the energy sector will improve the transmission system
corridor. The 7-year program will build 550 km of high- and lead to a new master plan for power distribution.
speed road extending from south to north, connecting to
Georgia’s highway, and reaching Black Sea ports. The first Impact of operations. The completed Flood Mitiga-
$60 million tranche will upgrade selected road sections. tion Project reduced poverty and increased incomes.
Work also began on improving urban transport in Yerevan. The government estimates that 241,900 people have a
safer living environment. Undeveloped land came into
productive use, and water and wastewater services
and transport connectivity improved because of ADB
The Eighth Ministerial Conference assistance.
on Central Asia Regional Economic
Cooperation (CAREC) endorsed an Georgia
action plan for the energy sector
Partnership priorities. Since Georgia joined ADB in
and agreed on the establishment of 2007, loans worth $339 million were approved for trans-
a comprehensive results framework port, urban services, and crisis support. ADB’s resident
mission opened in January 2009. ADB approved loans
for the CAREC program. A yearly
worth $228.8 million: $80.0 million for growth recovery
effectiveness report will become a in response to the global financial crisis, $30.0 million for
standard feature of the program municipal services (for transport and to resolve traffic
Annual Report 2009 45
Table 11 Central and West Asia: Sovereign Loan Approvals by Country, 2009
($ million)
Country OCR ADF Total
SOVEREIGN
Armenia
Crisis Recovery Support Programa – 80.0 80.0
North–South Road Corridor Investment Program – Tranche 1 – 60.0 60.0
Azerbaijan
Water Supply and Sanitation Investment Program – Tranche 1 75.0 – 75.0
Georgia
Growth Recovery Support Programa – 80.0 80.0
Municipal Services Development – Phase 2 – 30.0 30.0
Road Corridor Investment Program – Tranche 1 – 118.8 118.8
Kazakhstan
Kazakhstan Countercyclical Support 500.0 – 500.0
CAREC Transport Corridor I (Zhambyl Oblast Section)
[Western Europe–Western People’s Republic of China
International Transit Corridor] Investment Program – Tranche 2 187.0 – 187.0
Kyrgyz Republic
CAREC Transport Corridor I (Bishkek–Torugart Road) – Project 2 – 28.0 28.0
Issyk-Kul Sustainable Development – 16.5 16.5
Pakistan
Accelerating Economic Transformation Program (Subprogram 2) 350.0 150.0 500.0
FIGURE 1 Central and West Asia: ADB Lending by FIGURE 2 Central and West Asia: ADB Disbursements by
Country, 2008–2009 (Sovereign and Nonsovereign) Country, 2008–2009 (Sovereign and Nonsovereign)
($ million) ($ million)
Afghanistan 101.0
Afghanistan 80.5
60.0
Armenia 119.1
Armenia 140.0
8.0
17.3
Azerbaijan 58.6
75.0 20.8
Azerbaijan 215.4
Georgia 111.4
228.8 69.9
Georgia
110.0
Kazakhstan 542.5
8.3
687.0
Kazakhstan 340.0
Kyrgyz Republic 24.0
27.1
44.5
Kyrgyz Republic 1,099.6
Pakistan
1,923.3
940.0 67.1
Pakistan Tajikistan
1,090.0 50.0
60.0 125.9
Uzbekistan Uzbekistan
130.0 49.0
0 200 400 600 800 1,000 1,200 0 250 500 750 1,000 1,250 1,500 1,750 2,000
S
the water pipe was built,” says Janargul, a nurse at the local
ome of the richest water resources in Central Asia can hospital. Diarrhea was common and the hospital was so
support for renewable energy and power transmission, ADB’s share focusing on reforms in electricity, finance,
broadened the energy partnership. Leaders of the Friends agriculture, and social protection. ADB signed agreements
of Democratic Pakistan assigned ADB a lead role in helping with Pakistan banks to provide finance and guarantees for
prepare a master plan targeting international assistance letters of credit with international banks. ADB also helped
in energy. ADB supported economic stabilization reforms mobilize international financing for the first private sector
under a program of the International Monetary Fund, hydropower project. With the World Bank, ADB completed
A
t Secondary School Number 94 in Tashkent City, benefit. Their central role means all students and teach-
Rogova Nadejda Viktorovna moves among stu- ers—about 6 million students and 200,000 teachers over
dents working on computers, supervising their 5 years—will gain computer skills. ADB financed $30 mil-
multimedia lessons in mathematics. lion of the $43 million cost of the project.
A teacher since 1990, she completed in-service teacher Cluster leader schools act as resource centers for sur-
Central and West Asia
training in information technology in June 2009, part of rounding schools typically up to 30 kilometers away. By
the ongoing ADB-funded Information and Communica- offering two computer classes—one for students and an-
tion Technology in Basic Education Project. other for teachers—to surrounding schools, the opportu-
“Learning is more interactive using computers, and nity for teachers to train and spread knowledge is readily
students learn far faster than the old ways,” Viktorovna available.
says. “They are able to access a lot more information on The project contains specific measures that directly im-
various subjects, too.” pact about 165,000 poor students in grades five through
Under the umbrella of the government’s National Pro- nine. For example, the project ensures 70% of the cluster
gram for Basic Education Development, the project aimed leader schools are in rural and poor areas.
to put information and communication technology (ICT) Materials in languages, including Karakalpak, Kazakh,
in schools. Before the project began in 2006, computer Korean, Kyrgyz, Russian, Tajik, and Turkmen, provide a
access for students was limited to 18% of secondary and leg up for minority students. Pilot projects are also testing
half of all schools. alternative ways of connecting remote schools, including
Computers installed in September 2009 are already the use of digitized phone lines, or mobile and wireless
improving education for 1,700 students, says Tamara connections.
“ICT literacy has increased dramatically since the
project was launched,” says Sayora Melikova, director of
School Number 21 in Samarkand City. “Before, comput-
ers were for grades eight and nine, but now grades five
through nine have them, too,” she says. Tertiary education
is computer-based these days, so ICT study is critical to
students’ further education.
“This project is giving them a head start,” says
Melikova.
Chapter 8
EAST ASIA
East Asia
The People’s Republic of China, Mongolia
ADB support for the People’s Republic of China (PRC) and Mongolia
concentrated on mitigating the effects of the global financial crisis.
Lending in the PRC complemented the government’s massive fiscal
stimulus program and supported rehabilitation efforts in the wake
of the devastating 2008 Wenchuan earthquake. In Mongolia, ADB
helped develop a social program to improve access to basic social
services for the poor. ADB facilitated cooperation between the PRC
and Mongolia in such areas as joint customs control, border transport
development, and trade logistics. Regional trade and economic
cooperation with other countries of Central Asia and the Greater
Mekong Subregion were also promoted.
52 Asian Development Bank
Overview
The Global Economic Crisis:
A
DB operations in East Asia were guided by Stra ADB’s Response
tegy 2020 and the need to respond to the effects
The People’s Republic of China
of the global financial crisis on the PRC and
Mongolia. In the PRC, ADB lending complemented • Supported the stimulus package through in-
the government’s massive fiscal stimulus program that vestment in transport, natural resource man-
agement, urban infrastructure, environment
moderated the impact of the crisis on the economy.
improvement, and job creation in small cities
Support for post-disaster rehabilitation, energy efficiency and towns
in transportation, natural resource conservation, and
integrated urban–rural development were the highlights
• Provided technical assistance resources to im-
prove access to financial services for the poor
of lending operations. In Mongolia, ADB helped develop and vulnerable households and to strengthen
a social program that improved access of the poor to basic the legal, regulatory, and supervisory frame-
social services. ADB also promoted nonsovereign lending work of the PRC’s finance sector
and private–public partnerships in infrastructure, and
Mongolia
measurable progress was made in renewable energy proj-
ects in the PRC. In both countries, ADB provided tech- • Partnered with the Japan International Coop-
eration Agency to jointly finance $110 million
nical assistance to increase access to financial services,
to facilitate social welfare reforms and to help
support social services, promote clean technology and establish social safety nets. This complemented
alternative energy, facilitate trade among neighboring the 18-month stand-by arrangement with the
countries, and enhance regional cooperation. International Monetary Fund
Total lending operations (Table 15) in the PRC • Provided a $17 million Asian Development
East Asia
consisted of 12 sovereign loans for $1.8 billion and 3 non- Fund grant for the Education for the Poor proj-
sovereign loans for $192.9 million. For Mongolia, financial ect and four Japan Fund for Poverty Reduction
assistance included two Asian Development Fund (ADF) grants totaling $10 million to help protect the
grants totaling $33.9 million, of which $16.9 million was poor and the vulnerable groups from the ad-
verse impact of the crisis
made in conjunction with an ADF loan of $43.1 million
• Provided $2 million in technical assistance for
policy and institutional support to the banking
sector on systemic risk management
Highlights
• A $400 million emergency loan to reconstruct
and upgrade damaged roads, bridges, and
school buildings in Sichuan and Shaanxi for the Social Sectors Support Program (Tables 13 and 15).
provinces in the wake of the devastating 2008 The PRC received $9.9 million in grants from various
Wenchuan earthquake sources for climate change, energy efficiency, and water
conservation and wastewater-related demonstration com-
• Greening of the PRC portfolio through projects
in renewable energy, sustainable transport, ponents (Table 13). Mongolia received $10.3 million
urban development, and natural resource from the Japan Fund for Poverty Reduction for four
management projects that focused on energy conservation, early
• A second Panda bond issue worth $146.5 mil- childhood education and nutrition, and health protection
lion (CNY1 billion) to support ADB private sec- during the financial crisis. Total technical assistance
tor operations amounted to $40.2 million, consisting of $24.6 million
• A $60 million loan and grant for the Mongolia for the PRC, $7.2 million for Mongolia, and $8.4 million
Social Sectors Support Program to mitigate the for regional technical assistance.
negative social consequences of the financial Knowledge management was strengthened. Filters
crisis and promote priority social sector reforms were adopted to screen project proposals upon entry, peer
reviews helped ensure quality, and knowledge products
Annual Report 2009 53
East Asia
TABLE 14 East Asia: Portfolio Performance Indicators for Sovereign Lending, 2008–2009
Contract Awards/
Commitments Disbursements Loans at Risk
Ongoing Loans
as of 31 Dec 2009 2009 2008 2009 2008 2009 2008
Country (no.) ($ million) ($ million) ($ million) ($ million) (%) (%)
and services were jointly programmed with the govern- to assume increased portfolio management responsibili-
ment during country programming discussions. Thirty-two ties, and phased delegation of disbursement functions
knowledge products and services were completed while to the PRC was implemented. The increasing number
knowledge sharing was conducted through 34 confe- of smaller loans approved and delays in project comple-
rences and workshops, 8 book launches, and 8 interna- tion contributed to an expanding portfolio. Operational
tional conferences. targets for project administration were met.
Portfolio Management
ADB continued to improve
ADB continued to promote results-based portfolio
project readiness and streamline
management and effective development by improving
project readiness and streamlining ADB procedures,
procedures, aligning them with
aligning them with government procurement and government procurement and
approval processes. Resident missions were strengthened approval processes
54 Asian Development Bank
TABLE 15 East Asia: Sovereign and Nonsovereign Loan Approvals by Country, 2009
($ million)
Country OCR ADF Total
SOVEREIGN
China, People’s Republic of
Emergency Assistance for Wenchuan Earthquake Reconstruction 400.0 – 400.0
Xinjiang Urban Transport and Environmental Improvement 100.0 – 100.0
Liaoning Small Cities and Towns Development Demonstration Sector 100.0 – 100.0
Shaanxi Qinling Biodiversity Conservation and Demonstration 40.0 – 40.0
Guiyang Integrated Water Resource Management (Sector) 150.0 – 150.0
Hebei Small Cities and Towns Development Demonstration Sector 100.0 – 100.0
Anhui Integrated Transport Sector Improvement 200.0 – 200.0
Lanzhou Sustainable Urban Transport 150.0 – 150.0
Railway Energy Efficiency and Safety Enhancement Investment Program – Tranche 1 300.0 – 300.0
Shanxi Integrated Agricultural Development 100.0 – 100.0
Guangdong Energy Efficiency and Environment Improvement Investment Program – Tranche 2 22.1 – 22.1
Shanxi Small Cities and Towns Development Demonstration Sector 100.0 – 100.0
Mongolia
Social Sectors Support Programa – 43.1 43.1
Urban Development Sector (Supplementary) – 7.0 7.0
NONSOVEREIGN
China, People’s Republic of
Small Hydropower Development 58.6 – 58.6
Zhangbei Wind Power 34.3 – 34.3
Municipal Waste to Energy 100.0 – 100.0
TABLE 16 East Asia: Cumulative Lending and FIGURE 3 East Asia: ADB Lending by Country,
Disbursements by Country as of the end of 2009 2008–2009 (Sovereign and Nonsovereign)
($ million)a ($ million)
Country Lending Disbursements
China, People’s 1,954.9
China, People’s Republic of 22,959.1 14,905.8 Republic of 1,750.1
Mongolia 726.7 638.1
Totalb 23,685.8 15,543.9 50.1
Mongolia
a Includes nonsovereign (public and private) sector loans.
b Excludes Hong Kong, China; the Republic of Korea; and Taipei,China, which have 0 500 1,000 1,500 2,000
graduated from regular ADB assistance.
2008 2009
initiated for innovative projects such as the 250-mega- 0 500 1,000 1,500 2,000
watt Tianjin integrated gasification combined cycle
2008 2009
project and a concentrated solar thermal power develop-
ment project in the western PRC while carbon capture
East Asia
and storage demonstration studies were started to iden- and a short-term crisis strategy in consultation with other
tify barriers, develop road maps, and to identify poten- development partners. ADB provided funds to help
tial projects. ADB continued its support for balanced and protect the poor during the crisis and discussed ways to
environmentally sustainable urbanization of small cities adjust the timing, funding arrangements, and sequencing
and towns in Hebei, Liaoning, and Shanxi provinces. of proposed projects to support the government’s crisis
ADB, with the Ministry of Finance, organized a response program.
national workshop to promote sustainable urban devel-
opment. The PRC–ADB knowledge-sharing platform,
with its first event on sustainable urbanization, facili-
tated exchange between the PRC and other developing
member countries on urban development.
Mongolia
Partnership priorities. To respond swiftly to the effects
of the global financial crisis, ADB assisted the govern-
ment in formulating a country operations business plan
Impact of operations. ADB helped the government financing needs and by continuing longer-term policy
start reforms in the health insurance system, improving reform.
the financing of hospitals and rural health facilities, and Two projects funded through the Japan Fund
developing incentives to encourage health workers to work for Poverty Reduction sought to promote community
in rural areas. ADB also supported overhauling the legal natural resource management by introducing alternative
status of family group practices and strengthening the livelihoods to the rural poor. A grant of $14.7 million in
legal and regulatory basis for public–private partnership 2008 supported an innovative private sector development
initiatives in the health sector. In education, an ADF approach in agro-processing that helped the rural poor
grant ensured that those most affected by the crisis stay by expanding value chain processing of food products,
in school by helping the government meet its short-term marketing, and exports.
T
he glassmakers at Jincheng East Glassware’s work- Development Project in Jincheng captures coal mine
shops in Jincheng, Shanxi province breathe easier methane from mine shafts to fuel a 120-megawatt
now because the company’s switch from coal to power plant, and transmits and distributes methane to
East Asia
methane gas to fuel its furnaces has improved air quality commercial, residential, and industrial consumers in the
in the factory and greatly reduced the incidence of respi- city.
ratory disease. The furnace upgrade saves the company For Wei Jiusheng, who drives a methane-powered
$147.10 (CNY1,000) per day, and because the consistent taxi, the availability of this cleaner, cheaper fuel is a boon.
gas supply keeps the temperature of the furnaces steady, When Wei used gasoline, filling the fuel tank was so costly
the glass melts evenly without trapping bubbles, reduc- that he was barely able to support his wife and child. Now
ing wastage by 20%. that he has converted his car to methane gas, he earns
The methane that fuels the glassworks is tapped from an average of $440 a month (CNY3,000), substantially
the city’s extensive coal deposits. Methane is highly explosive more than most drivers in his city. To reduce air pollution
and must be extracted from the underground coal mines to and promote the use of methane gas, the municipal
keep working conditions safe. But once captured it is one government later made the conversion mandatory for all
taxis and buses, and many owners of private vehicles have
made the switch, too.
Households also make major savings now that coal
mine methane is widely available on tap. The average
annual cost for gas supply for a family is $52 (CNY350),
compared with $294 (CNY2,000) for coal. Making piped
gas available not only reduced households’ expenses but
also liberated women from time-consuming cooking. The
Jincheng municipal government plans to cover the whole
city with pipelines to supply over 60,000 households with
coal mine methane for heating and cooking by 2011.
A
tems and sanitation, and installing ramps and other facili-
Mongolian herder’s daughter rushes into a kin-
ties for students with physical disabilities. By 2007, a total
dergarten in Töv, some 135 kilometers from
of 5,994 physically disabled students were enrolled in the
Ulaanbaatar. With temperatures outside dropping
136 schools that ADB financing restored. The project pro-
to –30°C, the school, with its age-appropriate safety fur-
vided much-needed teacher training and free textbooks to
niture, audio and video equipment, and toys, provides
children from poor families. In all, the program benefited
warmth and comfort on an early morning in January.
72,653 primary school students and 124,251 secondary
Extreme winter weather is difficult for young children.
students in 2005/06.
Six new schools built under the ADB-supported Second
The project also supported several polices, includ-
Education Development Project provide welcome relief
ing an extension of basic education to 12 years in 2009,
and have made a tangible contribution to preschool and
from 10 years in 2005, and an education master plan for
primary education, with preschool enrollment increasing
2006–2015 that the government has adopted. The Edu-
from 45% in 2002/03 to about 57% in 2007/08. They
cation Donors’ Consultative Mechanism devised in 2005
have helped develop part of the system that has struggled
to guide activities of ADB and its partners is viewed as a
since the former Soviet Union–era funding was withdrawn
East Asia
model for donor coordination for other sectors.
in the 1990s.
Total project costs of $68.5 million comprised $14.0
Approved in 2002, the project aimed to help provide
million from ADB, $45.0 million from Japan, $4.8 million
universal access to quality primary and secondary education,
from the Nordic Development Fund, and $4.7 million from
especially in rural areas and poor urban communities.
the Government of Mongolia.
In 2009, newly constructed schools operated one shift
ADB assistance has played a part in Mongolia’s
for kindergarten and two for primary school, with 3,179
notable progress in reviving education since Soviet
funding ceased. In 2006, the enrollment rate for primary
and secondary education had recovered to 95%, from a
low of 81% in 1995.
Ongoing partnerships have been a major factor in
reclaiming achievements and a strong political will exists
for reforms that deliver quality education.
Chapter 9
PACIFIC
The Cook Islands, the Fiji Islands, Kiribati,
Pacific
the Marshall Islands, the Federated States of
Micronesia, Nauru, Palau, Papua New Guinea,
Samoa, Solomon Islands, Timor-Leste, Tonga,
Tuvalu, Vanuatu
Overview
The Global Economic Crisis:
A
DB helps 14 Pacific developing member countries ADB’s Response
raise living standards and build resilience by devel- • Improved economic monitoring, led by the
oping economic and social infrastructure, strength- quarterly Pacific Economic Monitor
ening governance, and promoting private sector growth. • Analytical work, including the release of Taking
Innovative approaches continued meeting the region’s the Helm: A Policy Brief on a Response to the
unique challenges. ADB has scaled up its lending and Global Economic Crisis
nonlending operations in response to increasing demand • Approval of economic recovery support
from Pacific countries. The Pacific Approach 2010–2014, programs for the Cook Islands and Tonga
produced in 2009, aims to improve the effectiveness of
future ADB development operations in the Pacific.
Frequent high-level consultation improved coordina- Fund (ADF) grants, contract awards were 79.3% ($15.7
tion among development partners, laying the groundwork million) and disbursements 90.5% ($14.1 million). The
for a regional approach to the global economic crisis and Pacific Department’s achievements in contract awards
deepening the response to climate change. This included were the best in the past 10 years. The number of active
ADB strengthening its partnership with the US govern- technical assistance projects averaged 82 over the past 3
ment. years. Technical assistance savings were $2.3 million.
Five loans, four grant projects, and two technical assis-
tance projects were delegated to the resident missions
Portfolio Management in 2009, resulting in more effective monitoring, stronger
partnerships with Pacific developing member countries
Performance against targets for sovereign loans was 38.7% and development partners, and improved engagement in
for contract awards ($48.2 million) and 84.2% for disburse- policy dialogue.
Pacific
Regional Cooperation
Highlights
• New Pacific Approach 2010–2014 aimed at The Pacific Approach 2010–2014 supports strengthened
improved development effectiveness regional cooperation, the regional provision of services,
and better policies.
• New country partnership strategies for Palau,
Solomon Islands, and Vanuatu, and a midterm ADB approved a regional technical assistance proj-
review of Papua New Guinea’s country ect to improve its engagement in fragile states and
strategy and program 2006–2010 situations. The Infrastructure Advisory Center, estab-
• Significant increases in Pacific lending and lished under the Pacific Region Infrastructure Facility,
nonlending operations: $231.7 million in will help Pacific countries develop sustainable infra-
loans and $71.0 million in Asian Development structure and services. ADF investments in border roads
Fund grants, and $39.0 million in technical in Timor-Leste and cross-border infrastructure in Papua
assistance projects (including cofinancing) New Guinea were approved. The Private Sector Devel-
• Emergency response to natural disasters in the
Fiji Islands, Samoa, and Solomon Islands
• The Climate Change Implementation Plan for
Frequent high-level consultation
the Pacific, which gave member countries a improved coordination among
framework for developing and implementing
climate change investments and action plans
development partners, laying the
to 2015 groundwork for a regional approach
to the global economic crisis
Annual Report 2009 61
Pacific
Ongoing Loans
as of 31 Dec 2009 2009 2008 2009 2008 2009 2008
(no.) ($ million) ($ million) ($ million) ($ million) (%) (%)
TABLE 19 Pacific: Sovereign and Nonsovereign Loan TABLE 20 Pacific: Cumulative Lending and
Approvals by Country, 2009 Disbursements by Country as of the end of 2009
($ million) ($ million)a, b
Country OCR ADF Total Country Lending Disbursements
Impact of operations. Technical assistance for the Infra- Impact of operations. The Suva–Nausori Water Supply
Pacific
structure Master Plan and Infrastructure Development and Sewerage Project continued to improve water and
Project improved coordination among development part- sanitation services. Notable achievements included
ners, helping them support the infrastructure sector and commissioning a 10-kilometer (km) large-diameter raw
elevate government efforts to manage and develop infra- water main, completing a 4-million-liter clear water
structure and reform the ministries. reservoir, upgrading five major sewage pump stations, and
constructing about 5 km of sewers for a heavily populated
residential area.
The Fiji Islands
Partnership priorities. ADB operations are guided by
Kiribati
its 2007 Approach to Reengagement. ADB continued to
support ongoing operations in water supply, sanitation, Partnership priorities. ADB continued to help the
and road development. country overcome limited resources and geographic
isolation and make progress toward its economic growth
goals by emphasizing economic and financial planning
ADB continued to help Kiribati and management. Technical assistance was approved
to support economic management and reforms of state-
overcome limited resources and
owned enterprises.
geographic isolation and make
progress toward its economic Impact of operations. The Integrated Land and
Population Development Program on Kiritimati Island,
growth goals by emphasizing
which considered planning and zoning for residential and
economic and financial planning economic development land uses, continued to help the
and management government improve land allocation.
Annual Report 2009 63
FIGURE 5 Pacific: ADB Lending by Country, FIGURE 6 Pacific: ADB Disbursements by Country,
2008–2009 (Sovereign and Nonsovereign) 2008–2009 (Sovereign and Nonsovereign)
($ million) ($ million)
10.0 (0.3)
Cook Islands 15.5 Cook Islands 1.3
76.7 5.3
Fiji Islands Fiji Islands 9.7
Kiribati Kiribati
Nauru Nauru
Palau Palau
145.0 35.4
Papua New Guinea Papua New Guinea
100.0 19.9
2.8 Samoa 6.3
Samoa
2.6
Solomon Islands Solomon Islands
0.1
Timor-Leste Timor-Leste
Tonga Tonga
0.4
Tuvalu Tuvalu
0.6
Vanuatu Vanuatu
Pacific
development, energy reform, and climate change, leading
Partnership priorities. The government cleared its loan to the adoption of strategy documents and work plans.
repayment arrears with ADB in March and has main-
tained subsequent repayments. The approved country
The Federated States of Micronesia
operations business plan, 2009–2011, prioritizes tech-
nical assistance and policy advice to support public sector Partnership priorities. Economic management and
reform initiatives, formulate climate and environmental accountability, including social and private sector
adaptation plans, and improve the government’s financial development, remained priorities. ADB strengthened its
management. partnership with the US through high-level dialogue and
closer collaboration during project implementation.
Impact of operations. Technical assistance programs
continued to support improved public sector perfor- Impact of operations. The Omnibus Infrastructure
mance and a better enabling environment for private Project helped restore critical water supply, sanita-
sector activity. ADB also supported the organization of tion, and power infrastructure. The technical assistance
program continued to strengthen the government’s ability
to manage finance, budget, and performance.
Technical assistance programs in
the Marshall Islands continued to
Nauru
support improved public sector
Partnership priorities. After its reengagement in May
performance and a better enabling
2008, ADB stepped up its activities, which are closely
environment for private sector aligned with the updated National Sustainable Develop-
activity ment Strategy.
64 Asian Development Bank
Impact of operations. ADB operations focused on ADB’s first private sector project in Papua New
improving infrastructure and public sector management. Guinea was approved and disbursed in 2009. A total of $18
million was disbursed for the expansion and improvement
of a nationwide mobile telecommunication network, which
Palau
increases access to affordable telecommunication services,
Partnership priorities. ADB and the government particularly for low-income users, and improves their acces-
developed a country partnership strategy to guide their sibility and quality, particularly in the country’s remote and
relationship over the next 5 years. They will work to rural areas.
improve the public sector’s effectiveness, facilitate
private sector development, and manage the threats of Impact of operations. Ongoing ADB assistance
climate change. improved the Highlands highway network and national
road safety. ADB also strengthened support for private
Impact of operations. Technical assistance supported sector participation and development by providing
embedding the development strategy into ministries’ assistance for the implementation of the national
budget plans, helped develop a health insurance scheme public–private partnership policy and in the delivery of
to complement existing health care services, and helped rural health services, including HIV/AIDS prevention.
prepare a new commercial code to improve private sector The private sector was tapped to improve the supply
and consumer lending. and distribution of medical supplies. An ADB-supported
project established a financial literacy and outreach
Papua New Guinea program, and continued to strengthen the successful
Nationwide Microbank, which grew to 12 branches.
Partnership priorities. The midterm review of ADB’s
country strategy and program 2006–2010 confirmed the
ADB’s first private sector project in
rationale and validity of the four strategic priorities: public
Papua New Guinea was approved
Pacific
ADB support in the Pacific has helped train health workers including in Papua New Guinea
Annual Report 2009 65
L
ocals wade through the shallows on a beach in the slim By contrast, villagers of Panakais on the west coast have
hope of finding a few small shells and peanut worms. established a no-fishing zone, although on this day they give
Two hours away, on a palm-fringed coast on the other themselves permission to break the ban for a special feast.
side of a mountain range dividing this narrow island prov- The community has also renounced poisoning fish with der-
ince, shiny mullet slither in the nets of joyful fishermen. ris root powder, fishing with dynamite, and night fishing
The contrast between these two stretches of water reveals by flashlight using fine-mesh nets as part of a self-imposed
much about the story of Papua New Guinea’s declining management plan drawn up with the help of Ailan Aware-
coastal resources—and the efforts of some communities to ness, a local nongovernment organization.
reverse the trend. “They told us in a scientific way why we should not catch
Pacific
“This area has been totally overfished because it is near small fish and why we should leave the spawning fish alone,”
town, very accessible, and there are no restrictions or man- says Francis Bolaf, chair of Panakais’ fisheries management
agement of the reef,” a resident complains on the beach out- committee.
side Kavieng, the main port of New Ireland. “The people who The community-based management approach to con-
serving marine resources has been pioneered through the
Coastal Fisheries Management and Development Project,
financed by ADB with a $5.7 million soft loan. Seven com-
munities in New Ireland and another 17 in Morong province
had applied the methods by the time the project ended in
2007. A further 37 were waiting to participate.
“Our project was to kick-start this concept and pilot it,
and I’m happy that this has been achieved and we would
like to see it replicated throughout the coast,” said Allan Lee,
officer-in-charge at the ADB resident mission in Port Moresby.
As more communities decide to make short-term sacri-
fices for long-term gains, the tide could turn for Papua New
Guinea’s once bountiful reefs.
S
everal times a week, Mary Puke travels from Visale in duplication of efforts. “By pooling our different ideas, we
West Guadalcanal to sell mangoes in Honiara, the generally come up with a much better result,” NZAID man-
capital of Solomon Islands. The 80-kilometer round trip ager Guy Redding says.
used to take her about 6 hours on a route damaged in conflict The restoration of important transport links like the
more than a decade ago. She can now cover that ground in Tanavasa Bridge—the “Bridge of Peace,” which had been
2 hours, after ADB’s Post-Conflict Emergency Rehabilitation blown up during the conflict—is a tangible symbol of the
Project restored roads and bridges. trust and cooperation that now exists between communi-
Bridges were bombed and major roads linking provincial ties previously at war.
and market centers with communities in Guadalcanal and “The project has been widely regarded as being success-
Pacific
the Island of Malaita were severely damaged during ethnic ful, delivering on its original objectives in an environment
tensions that afflicted this South Pacific archipelago in that was still fragile,” says Paul Kelly, RAMSI development
1999–2000. An October 2000 peace agreement ended coordinator. “It also contributed to economic growth in
conflict between groups from Guadalcanal and Malaita Solomon Islands. A working network of improved roads and
provinces, but communities were left without access to bridges, particularly in rural areas, has joined communities
markets, clinics, schools, and agricultural services. together and become a lifeline to markets and hospitals.’’
“Frankly speaking, these were the worst conditions The Solomon Islands Road Improvement Project is the
I’d seen in nearly 30 years of working on road projects,” next big transport rehabilitation project. This will build on
the work of ADB’s Post-Conflict Emergency Rehabilitation
Project, spreading the gains more widely. Policy advice and
capacity building for the Ministry of Infrastructure is part of
the package, and there are plans to involve youth, school
dropouts, and women’s groups in local road maintenance
to maximize the useful life of these arteries of commerce and
peaceful existence.
Pacific
enterprise (SOE) reforms. Finding the Balance, a 2009
comparative study of SOE performance, rated Tonga as
having outperformed the Fiji Islands and Samoa in SOE
reform.
Tuvalu
Partnership priorities. The country operations business
plan, 2010–2012, focuses on improving public expendi-
ture and financial management.
Chapter 10
SOUTH ASIA
Bangladesh, Bhutan, India, the Maldives, Nepal, Sri Lanka
South Asia
ADB strengthened partnerships with key donors to deliver effective
assistance and provided support to mitigate impacts of the global economic
crisis. Regional cooperation and integration efforts were stepped up and the
risk-based approach to portfolio management was strengthened. Climate
change became a pillar of a country partnership strategy.
70 Asian Development Bank
A
DB’s performance in South Asia remained reached $3.2 billion from $2.4 billion in 2008 (Table 22).
strong. ADB strengthened donor harmonization
and aid effectiveness through donor partnership
in formulating country strategies.
Highlights
ADB made climate change a pillar of a country part- • Included climate change as a pillar of Nepal’s
country partnership strategy
nership strategy and provided substantial assistance in
response to the global economic crisis. • Extended substantial financial assistance in
response to the global economic crisis
• Further strengthened donor harmonization
Portfolio Management and aid effectiveness through partnership
with key donors in formulating country part-
nership strategies in addition to undertaking
ADB strengthened the risk-based approach to portfolio
country portfolio reviews
management. This focuses on complex and problematic
projects and sectors; capacity development assistance • Strengthened risk-based approach to portfo-
to executing agencies; better project preparation and lio management
enhanced quality-at-entry review, including more rigorous
assessment of project readiness; and closer monitoring of
major deviations at all stages of the project cycle. As a result,
The Global Economic Crisis:
ADB’s Response
Bangladesh
• Helped the government stimulate economic
recovery and improve social safety nets through
the Countercyclical Support Facility
South Asia
Table 22 South Asia: Portfolio Performance Indicators for Sovereign Lending, 2008–2009
South Asia
Contract Awards/
Commitments Disbursements Loans at Risk
Ongoing Loans
as of 31 Dec 2009 2009 2008 2009 2008 2009 2008
Country (no.) ($ million) ($ million) ($ million) ($ million) (%) (%)
Regional Cooperation
ADB supported regional cooperation and integration
in South Asia through the South Asian Association for ADB convened the first High
Regional Cooperation (SAARC), the Bay of Bengal Initia-
Level Forum on Emerging Vision
tive for Multi-Sectoral Technical and Economic Coopera-
tion, and subregional initiatives. In April, ADB convened for Shared Prosperity: South Asia
the first High Level Forum on Emerging Vision for Shared and Beyond
72 Asian Development Bank
TABLE 23 South Asia: Sovereign and Nonsovereign Loan Approvals by Country, 2009
($ million)
Country OCR ADF Total
SOVEREIGN
Bangladesh
Participatory Small-Scale Water Resources Sector – 55.0 55.0
Small and Medium-Sized Enterprise Development – 76.0 76.0
Urban Public and Environmental Health Sector Development Program
– Program Loan – 70.0 70.0
– Project Loan – 60.0 60.0
Public Expenditure Support Facility Program and Countercyclical
Support Facility Support Programa, b 600.0 144.9 744.9
South Asia Tourism Infrastructure Development (Bangladesh, India, and Nepal) – 12.0 12.0
Padma Multipurpose Bridge Design (Supplementary) – 10.0 10.0
India
Uttarakhand Power Sector Investment Program – Tranche 3 30.6 – 30.6
Rajasthan Urban Sector Development Investment Program – Tranche 2 150.0 – 150.0
India Infrastructure Tranche Financing Facility – Tranche 2 200.0 – 200.0
National Power Grid Development Investment Program – Tranche 2 200.0 – 200.0
Madhya Pradesh Power Sector Investment Program – Tranche 5 166.0 – 166.0
National Highway Corridor (Sector) I – (Supplementary) 100.0 – 100.0
North Eastern Region Capital Cities Development Investment Program – Tranche 1 30.0 – 30.0
Rural Roads Sector II Investment Program – Tranche 4 185.0 – 185.0
Mizoram Public Resource Management Program 94.0 – 94.0
Developing Public Resource Management Program in Mizoram 6.0 – 6.0
South Asia Tourism Infrastructure Development (Bangladesh, India, and Nepal) 20.0 – 20.0
Second India Infrastructure Tranche Financing Facility – Tranche 1 210.0 – 210.0
Assam Power Sector Enhancement Investment Program – Tranche 1 60.3 – 60.3
Jharkhand State Roads 200.0 – 200.0
Himachal Pradesh Clean Energy Development Investment Program – Tranche 2 59.1 – 59.1
South Asia
Maldives
Economic Recovery Program – 35.0 35.0
Capacity Building for Economic Recovery (TA Loan) – 1.5 1.5
Nepal
Education Sector Program (Subprogram 3) – 25.0 25.0
South Asia Tourism Infrastructure Development (Bangladesh, India, and Nepal) – 12.8 12.8
Air Transport Capacity Enhancement – 70.0 70.0
Energy Access and Efficiency Improvement – 65.0 65.0
Sri Lanka
Clean Energy and Access Improvement 135.0 25.0 160.0
Eastern and North Central Provincial Road – 70.0 70.0
Greater Colombo Wastewater Management 80.0 20.0 100.0
NONSOVEREIGN
India
Small and Medium Enterprise Trade Finance Development Facility 100.0 – 100.0
FIGURE 7 South Asia: ADB Lending by Country, FIGURE 8 South Asia: ADB Disbursements by Country,
2008–2009 (Sovereign and Nonsovereign) 2008–2009 (Sovereign and Nonsovereign)
($ million) ($ million)
1,027.9 1,068.0
Bangladesh 592.0 Bangladesh 615.6
31.0
Bhutan Bhutan
80.0 4.3
1,811.0 1,551.7
India India
2,707.6 1,655.6
36.5 9.3
Maldives Maldives
15.0 2.7
172.8 73.5
Nepal Nepal
61.7
0 500 1,000 1,500 2,000 2,500 3,000 0 500 1,000 1,500 2,000
South Asia
the subregional transport infrastructure and trade facil- Sri Lanka 4,685.5 3,414.8
for small-scale water resources and small and medium- harmony among development partners and reduced
sized enterprises. Ten loans were approved totaling transaction costs for the government. The design of
$1 billion. the Padma Multipurpose Bridge was initiated with
ADB support, and additional resources were provided
Impact of operations. ADB’s support for primary through a supplementary loan to accelerate prepara-
education engendered progress in several key perfor- tion of this high-priority project. The Northwest Crop
mance indicators. The sector-wide approach fostered Diversification Project substantially raised the incomes
K
amrunnahar Akter says the birth of her third child at a of Progoti Samaj Kallyan Protisthan, who oversees an average
well-equipped health care center was free of the stress of five deliveries per day at the maternity center where Akter
she experienced in her previous deliveries. gave birth.
“I have had two children at home in deliveries that had a So far the project has established 116 primary health care
lot of anxieties and difficulties, but here I have had no worries,” centers and 9 comprehensive reproductive health care centers;
Akter, who is 29, said as she rested after giving birth to a healthy 41 more health care facilities and 42 community toilets will be
boy at the center run by Progoti Samaj Kallyan Protisthan, a non- built before the project closes at the end of 2011.
government organization (NGO) running health care centers in The centers also provide other medical treatment,
Dhaka operated under the Second Urban Primary Health Care vaccinations, family planning and nutritional advice, and
Project in partnership with the Government of Bangladesh. education on primary health care. The project targets care to
Akter’s experience is typical of women across the country the most needy: at least 30% of the health centers’ free services
who have benefited from an innovative tie-up between local reach the urban poor, and nutritional supplements are supplied
governments and NGOs to deliver primary health care to poor to severely malnourished women and children. Satellite clinics
South Asia
urban communities. Such public–private partnerships provide in slum areas treat patients who cannot come to the main
facilities and services to six city corporations and five municipali- health centers. The project has assisted more than 100,000
ties across Bangladesh. institutional deliveries, and over 5 million have benefited so far
Building on an earlier ADB project, this initiative aims to from the project.
reach underserved communities and, in particular, to improve The government is responsible for devising and overseeing
child and maternal health in areas where mortality rates re- the program, while NGOs deliver the health care and family
main high. The under-5 child mortality is 65 per 1,000 births; planning services.
41% of children under 5 are underweight, 12% severely so. The project is financed mainly by ADB with cofinance from
the Department for International Development (DFID) of the
United Kingdom, the Swedish International Development Coop-
eration Agency (Sida), and the United Nations Population Fund
(UNFPA). ORBIS, an international NGO, helps the project provide
primary eye care services.
of some 250,000 small and marginal farmers, and ADB and ADB’s Strategy 2020. The review recommended
began preparing a second phase. continued implementation as planned.
B
udhbir Tamang tells stories of close calls driving on people, according to an independent evaluation by ADB.
Bhutan’s treacherous mountain roads, white-knuckle ADB is also working to improve about 140 km of the
experiences that left him inches from plunging to cer- Trongsa–Gelephu highway—the vital route linking Bhutan to
tain death. the India border—and about 100 km of other important road
The 27-year-old truck driver has fewer hair-raising tales sections.
after ADB assisted in the renovation and upgrading of 328 “The benefits of that project have been immense,” says
kilometers (km) of the East–West Highway, a vital passage that Pherub Phuntsho, an engineer with Bhutan’s Department of
South Asia
connects the two sides of the country. All-weather pavement Roads, who reports that heavy vehicle and bus accidents have
was installed on the single highway bisecting the country, fallen dramatically.
along with concrete barriers on the most dangerous curves. The impact of upgrading the East–West Highway is
“It’s still dangerous,” said Tamang, “but now my wife highly visible. Traffic in some sections of the highway has
doesn’t worry that I won’t come home alive when I have to drive increased from as few as 4 or 5 vehicles per day before im-
cross-country.” provement to 300 or 400 vehicles per day, and twice as
Vehicular transport in Bhutan, which did not have a single much in other sections.
car until the 1960s, has grown rapidly in recent years, but Temphey, a 50-year-old farmer living near the western
the country’s road network, comprising 4,153 km of drivable city of Wangdue, has also benefited immensely as a result
roads, provides only limited coverage and cannot meet the of the highway improvement. The farmer of potatoes, rad-
growing demands of larger and heavier vehicles. ishes, and chili peppers used to spend more than a day
hauling his goods to market by ox. Today, it takes about an
hour to get his goods to market.
“I used to live like the ox in the field,” Temphey says.
“Now, my work is easier and I can spend more time with
my family.”
2003–2009, helped restructure the Assam State Elec- Partnership priorities. The country partnership stra
tricity Board, developed tariff rules, funded an electric tegy, 2010–2012, was prepared based on consultations
service billing system, and lowered transmission and
distribution system losses. Power supply was made more
reliable and 1,200 villages were connected to the grid. Donor Partnership in Formulating
ADB financed 24 projects under the first tranche of the Country Strategies for Nepal
A
India Infrastructure Project Financing Facility, 2008–
DB’s country partnership strategy for Nepal
2010, leveraging more than 10 times its own resources
2010–2012 was formulated through stake
from other commercial sources. holder consultations in partnership with the
United Kingdom’s Department for International De-
velopment and the World Bank. Consultations solicited
The country partnership strategy feedback on Nepal’s development priorities, and explored
ways to ensure programs’ development effectiveness.
2009–2012 for India aims to A second round of consultations was held in December
speed up poverty reduction and to provide feedback to stakeholders on the development
partners’ country strategies and discuss implementation
social development, help build challenges.
infrastructure, promote public– The donor partnership was extended to sector and the-
matic assessments, such as critical development constraints,
private partnerships, support gender equality and social inclusion, and climate change
climate change adaptation, and assessments. A “peace filter” was developed as a conflict-
sensitive tool for project design and implementation.
encourage innovative financing
Annual Report 2009 77
ADB’s country partnership in Nepal aims to sustain the gains of the peace process
with key stakeholders, including other development tion Project continued to provide improved water supply
partners. It aims to sustain the gains of the peace process and sanitation services and better health and hygiene in
by promoting broad-based inclusive economic growth, remote areas.
inclusive social development, governance and capacity
building, climate change adaptation, and environmental Sri Lanka
sustainability. The December participatory country port-
folio review focused on development effectiveness. ADB Partnership priorities. In line with the country partner-
approved six projects for $336.2 million in Asian Devel- ship strategy, 2009–2011, ADB projects supported fiscal
opment Fund (ADF) loans and grants and approved nine management, roads and transport, energy, water supply,
South Asia
technical assistance grants for $5.8 million. and education. ADB focused on postwar development
efforts when the long war against separatist rebels ended
Impact of operations. The Crop Diversification Project in mid-2009. ADB approved $330 million in loans for
completed in December 2008 improved the productivity three projects: the $160 million Clean Energy and Access
of secondary crops in 12 mid- and far-western districts. Improvement Project, the $70 million Eastern and North
Extensive social mobilization, innovative agriculture Central Provincial Road Project, and the $100 million
extension services, and processing and marketing Greater Colombo Wastewater Management Project.
services helped increase production, raise incomes of
participants, and improve nutritional status. An addi- Impact of operations. The Road Network Improvement
tional 14,963 person-years of employment were created. Project improved 309 kilometers (km) of national roads
The ongoing Community-Based Water Supply and Sanita- and rehabilitated 450 km of flood-damaged roads. The
Road Sector Development Project completed 800 km of
provincial roads. A 153 km road, cofinanced by the Euro-
pean Union, connected the South and East of Sri Lanka.
The end of the long conflict in
ADB continued to assist development in the previously
Nepal in mid-2009 allowed ADB conflict-affected northern and eastern provinces. Assis-
to focus development assistance tance for water supply and sanitation provided 2 million
people with safe water. ADB supported the modern-
on fiscal management, roads and
ization of secondary education, the development of a
transport, energy, water supply, distance education network, and expanded access to
and education higher education.
78 Asian Development Bank
Southeast Asia
Annual Report 2009 79
Chapter 11
SOUTHEAST
ASIA
Brunei Darussalam, Cambodia, Indonesia,
the Lao People’s Democratic Republic, Malaysia,
Myanmar, the Philippines, Singapore, Thailand, Viet Nam
Southeast Asia
The promotion of regional cooperation saw two subregional programs
pass significant milestones and strengthened ADB’s relationship with
the Association of Southeast Asian Nations.
80 Asian Development Bank
A
DB helped mitigate the impact of the global finan-
cial crisis and to alleviate the plight of commu-
nities affected by natural calamities. ADB’s PORTFOLIO MANAGEMENT
operations also sought to improve transport, electricity
supply, access to clean water and sanitation, education, Portfolio performance continued to improve due to a
and primary health care, particularly for the poor and sustained focus on efficient project management and
disadvantaged. ADB activities further prioritized closer monitoring, greater delegation to resident missions,
sustainable natural resource use, enhanced public and country-specific actions to address systemic issues
service delivery, and finance sector and public expendi- (Table 26).
ture management reform.
Indonesia, Viet Nam, and the Philippines were among
The Global Economic Crisis:
the top five recipients of ADB support (Table 3).
Regional cooperation accelerated, expanding into ADB’s Response
new areas to improve connectivity. ADB intensified its Cambodia
emphasis on the quality of projects at entry, portfolio • Helped alleviate adverse impacts on the
poor in the Tonle Sap Basin by modifying the
Highlights Emergency Food Assistance Project to ex-
pand the cash-for-work program
• Almost doubled lending, compared with
2008, to $5.4 billion—41% of total loans Indonesia
approved—especially to help countries
affected by the global financial crisis and to • Supported access to commercial financing by
sustain social sector spending providing the $1 billion Public Expenditure
Support Facility
• Supported developing member countries’
crisis responses with Countercyclical Sup- • Supported countercyclical spending with the
port Facility loans, and a loan and guarantee $500 million Countercyclical Support Facility
to enhance access to commercial financing The Lao People’s Democratic Republic
sources
•
Southeast Asia
Cambodia
Piloting the Post-Harvest Technology and Skills Bridging Program for Rural Poor – – 2.0 2.0
Second Rural Water Supply and Sanitation Sector 21.0 – – 21.0
Strengthening Technical and Vocational Education and Training 24.5 – – 24.5
Tonle Sap Poverty Reduction and Smallholder Developmentb 27.3 – 12.4 39.7
Greater Mekong Subregion: Rehabilitation of the Railway in Cambodiab – – 21.5 21.5
Indonesia
Rice Fortification for the Poor – – 2.0 2.0
West Sumatera Earthquake Disaster – 3.0 – 3.0
Lao People’s Democratic Republic
Small Towns Water Supply and Sanitation Sector 23.0 – 5.8 28.8
Sustainable Natural Resource Management and Productivity Enhancement 20.0 – 15.0 35.0
Developing Model Healthy Villages in Northern Lao People’s Democratic Republic – – 3.0 3.0
Private Sector and Small and Medium-Sized Enterprises Development Program (Subprogram 2) 15.0 – – 15.0
Strengthening Higher Education 24.8 – – 24.8
Health Sector Development Program
– Program Grant 10.0 – – 10.0
– Project Grant 10.0 – – 10.0
Philippines
Philippine Energy Efficiencyb – – 1.5 1.5
Enhancing Midwives’ Entrepreneurial and Financial Literacyb – – 0.4 0.4
Typhoon Ketsana (Ondoy) under the Asia Pacific Disaster Response Fund – 3.0 – 3.0
Viet Nam
Thanh Hoa City Comprehensive Socioeconomic Developmentb – – 2.0 2.0
Formalizing Microfinance Institutions – – 1.5 1.5
Southeast Asia
TABLE 26 Southeast Asia: Portfolio Performance Indicators for Sovereign Lending, 2008–2009
Contract Awards/
Commitments Disbursements Loans at Risk
Ongoing Loans
as of 31 Dec 2009 2009 2008 2009 2008 2009 2008
Country (no.) ($ million) ($ million) ($ million) ($ million) (%) (%)
TABLE 27 Southeast Asia: Sovereign and Nonsovereign Loan Approvals by Country, 2009
($ million)
Country OCR ADF Total
SOVEREIGN
Cambodia
Greater Mekong Subregion: Cambodia Northwest Provincial Road Improvement – 16.3 16.3
Second Financial Sector Program (Subprogram 3) – 10.0 10.0
Tonle Sap Poverty Reduction and Smallholder Development – 3.4 3.4
Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia (Supplementary) – 42.0 42.0
Indonesia
Indonesian Infrastructure Financing Facility 100.0 – 100.0
Public Expenditure Support Facility Program 1,000.0 – 1,000.0
Countercyclical Support 500.0 – 500.0
Rural Infrastructure Support to PNPM Mandiri Project II 84.2 – 84.2
Capital Market Development Program Cluster (Subprogram 2) 300.0 – 300.0
Fifth Development Policy Support Program 200.0 – 200.0
Lao People’s Democratic Republic
Decentralized Irrigation Development and Management Sector (Supplementary) – 0.1 0.1
Philippines
Philippine Energy Efficiency 31.1 – 31.1
Credit for Better Health Care 50.0 – 50.0
Countercyclical Support 500.0 – 500.0
Development Policy Support Program (Subprogram 3) 250.0 – 250.0
Local Government Financing and Budget Reform Program (Subprogram 2) 225.0 – 225.0
Thailand
Greater Mekong Subregion: Highway Expansion 77.1 – 77.1
Viet Nam
Thanh Hoa City Comprehensive Socioeconomic Development – 72.0 72.0
Quality and Safety Enhancement of Agricultural Products and Biogas Development – 95.0 95.0
Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector – 151.0 151.0
Countercyclical Support 500.0 – 500.0
Support for the Implementation of the Poverty Reduction Program V (Subprogram 2) – 100.0 100.0
Secondary Education Sector Development Program
– Program Loan – 20.0 20.0
– Project Loan – 40.0 40.0
Central Regions Rural Water Supply and Sanitation – 45.0 45.0
Mong Duong 1 Thermal Power –Tranche 2 902.9 – 902.9
Subtotal 4,720.3 594.8 5,315.1
NONSOVEREIGN
Southeast Asia
Philippines
Visayas Base-Load Power Development 120.0 – 120.0
Thailand
Biomass Power 5.0 – 5.0
Subtotal 125.0 – 125.0
In the GMS, ADB continued to prioritize infrastruc- assisted 24,000 additional poor households in the Tonle
ture projects to expedite development of integrated Sap Basin. The Tonle Sap Rural Water Supply and Sani-
transport networks in the region’s economic corridors tation Sector Project expanded access to safe water and
and the implementation of cross-border transport agree- sanitation, resulting in better health and greater conve-
ment and trade facilitation measures. ADB organized nience, especially for women and girls, and helping
the 15th GMS Ministerial Conference in Thailand and achieve Cambodia’s Millennium Development Goals.
facilitated the Second Economic Corridors Forum in
Cambodia. Indonesia
ADB and the ASEAN Secretariat discussed the review
of their memorandum of understanding and undertook a Partnership priorities. The country strategy and prog
strategic comparison of ADB’s programs in BIMP−EAGA ram for 2006−2009 was fully aligned with the govern-
and the GMS with the ASEAN integration framework to ment’s medium-term development plan, which aimed
enhance synergies. to increase economic growth, create jobs, and accelerate
the achievement of the Millennium Development Goals.
ADB’s largest interventions focused on mitigating the
COUNTRY HIGHLIGHTS impact of the global economic crisis.
Southeast Asia
assistance helped establish a strategy and action plan to cial management and governance, and improved
develop the country’s capital market. ADB collaborated public service delivery to the poorest sub-districts.
with Brunei Darussalam to determine follow-on technical
assistance on a reimbursable basis.
The Lao People’s Democratic Republic
Cambodia Partnership priorities. The midterm review of ADB’s
country strategy and program for 2007–2011 affirmed
Partnership priorities. ADB’s country operations busi- its continued relevance to the country’s development
ness plan 2009−2012 was fully aligned with the govern-
ment’s 2008 Rectangular Strategy, Phase II. It aims to
achieve more inclusive, diversified economic growth ADB subregional programs
and greater poverty reduction through more targeted
achieved new milestones,
interventions in agriculture and rural development;
private sector, governance, and capacity development; accelerating infrastructure
and regional economic integration. development and enhancing
collaboration with the Association
Impact of operations. The Emergency Food Assistance
Project continued to help 89,000 poor households cope of Southeast Asian Nations
with food price hikes, and the cash-for-work program Secretariat
84 Asian Development Bank
FIGURE 9 Southeast Asia: ADB Lending by Country, FIGURE 10 Southeast Asia: ADB Disbursements by
2008–2009 (Sovereign and Nonsovereign) Country, 2008–2009 (Sovereign and Nonsovereign)
($ million) ($ million)
Malaysia Malaysia
Myanmar Myanmar
1,176.1 1,317.5
Philippines Philippines
820.0 853.2
82.1
Thailand Thailand
1,925.9 1,118.4
Viet Nam 789.7 Viet Nam 264.6
0 500 1,000 1,500 2,000 2,500 0 200 400 600 800 1,000 1,200 1,400
context. Priorities supported include agriculture, health, TABLE 28 Southeast Asia: Cumulative Lending and
education, and infrastructure which are core sectors in the Disbursements by Country as of the end of 2009
Sixth Five-Year National Socio-Economic Development ($ million)a, b
Plan, 2006–2010. Country Lending Disbursements
reduction targets were surpassed, and the business Myanmar 530.9 411.8
environment improved significantly. The Rural Finan- Philippines 11,828.9 9,706.9
cial Sector Development and Banking Sector Reform Thailand 5,470.2 4,207.7
Viet Nam 8,195.0 3,752.0
programs strengthened the banking system and bank c
Total 56,014.3 40,655.1
oversight, recapitalized state banks, improved credit
a Loan component of regional projects distributed to the countries.
quality, and significantly reduced the number of nonper- b Includes nonsovereign (public and private) sector loans.
c Excludes Singapore which has graduated from regular ADB assistance.
forming loans. The entry of new private banks during
2007–2009 fostered competition and efficiency and
helped establish the banking system as the main credit
source for agriculture and small and medium-sized
enterprises. Malaysia worked closely with
ADB to develop regional finance
Malaysia markets, including support given
Partnership priorities. Malaysia expanded its part- to the Islamic Financial Services
nership with ADB under BIMP−EAGA and the IMT−
Board to foster international
GT, contributing projects that form part of a fast-track
pipeline of priority infrastructure projects in the subre- prudential standards and liquidity
gions. This demonstrated the country’s commitment management
Annual Report 2009 85
T
hav Heat’s stilted, wooden house in the province of Siem are learning how to earn money and overcome a lack of skills.
Reap looks out onto verdant rice paddies. But life is not Women’s development centers, overseen by Ing Kantha
as idyllic as it may seem in the luscious Cambodian coun- Phavi’s ministry, and supported by partners, including ADB,
tryside. train women in life skills and entrepreneurship. They also facili-
“It can be very tough to feed my four children, especially in tate access to microcredit.
the rainy season,” Thav Heat, a widow, says. “When the harvest This may have some impact on developing the informal
season comes, we have food or rice to keep us going for just 5 economy, which has received little attention from either the
months. But after that we have to earn money to buy food.” government or international donors, according to the ministry.
Women across Cambodia face a similar challenge to make The women’s development centers focus initially on en-
the money they need, with husbands absent because of death, hancing existing skills and using locally available materials to
divorce, or migration for work in other provinces or abroad. help clients improve their livelihoods.
The opening of a women’s development center in Leang
Dey, Siem Reap, gave Thav Heat the opportunity to learn not
Southeast Asia
only improved mat-weaving and design techniques but also
how to produce bags and purses for the growing tourism
market in Siem Reap.
“People used to spend up to 6 days making one mat—and
then they would sell it for $5. Lots of labor to make very little
money,” says Uch Sarom, a training adviser with the ministry.
“Now they can make $3–$4 a day depending on how fast they
work. We are teaching them marketing and design, and also
giving general business training.“
Her new skills mean that Thav Heat can stay close to home
while earning the extra money her family needs. Even the raw
material for the bags she makes, a grass known locally as rom-
chek, grows right on her doorstep.
H
elen Dolino used to chase buses up and down the Reduction.
main road of Panabo City, scrambling on board to The center teaches poor women in Panabo City new
hawk her wares like many other women offering ways to increase their incomes, and helps them set up small
refreshments to travelers in the Philippines. stores to sell their products. So far, it has trained more than
“We would run from one bus to the other to sell our 100 women, including Dolino. Training modules include
merchandise since there was no designated terminal for food processing for native delicacies, fruit processing, ice
provincial buses and jeepneys,’’ says Dolino. It was chaotic, cream making, and simple accounting and bookkeeping.
and did not result in many sales, she recalls. The center plans to train 1,600 poor women in the city.
Today, Dolino and other vendors proudly display their Before she attended the Women’s Resource Center,
snacks, drinks, and souvenirs at small stalls they occupy at there were times when Dolino, 43, and her friends earned
an integrated terminal for buses and jeepneys—local mini- so little money that they had to resort to asking the local
buses—built with ADB’s help along a main highway in this social welfare office for rice and dried fish to feed their fami-
southern Philippine city. lies. Now, thanks to her training, Dolino earns extra income
In addition to this welcome benefit, the terminal, by selling native delicacies that women at the center pro-
opened by the city’s government with funding from the duce. “We now can earn $2 to $6 (P100 to P300) more
each day,” she says.
The Women’s Resource Center also operates a pre-
school where busy vendors can leave their children, know-
ing that they are safely learning nearby. In 2009, 37 stu-
dents were enrolled.
The Japan Fund for Poverty Reduction is financing the
construction of women’s resource centers in six other prov-
inces in Mindanao.
Southeast Asia
was approved in 1986 and its last technical assistance Impact of operations. ADB helped the government
project was approved in 1987. mitigate the impact of the global financial crisis through
policy-based operations and a $500 million Counter
The Philippines cyclical Support Facility loan. ADB also helped promote
Pipes in Negros Occidental, Philippines, are part of a project that brings water to the poor
energy efficiency and health care, particularly for mothers strategic direction to deepen the Thai capital market.
and children. ADB provided a $3 million grant under A study on an integrated ticketing system provided
the Asia Pacific Disaster Response Fund to assist people important recommendations for an expansion of
affected by typhoon Ondoy, and participated with Bangkok’s mass rapid transit.
partner agencies in a post-disaster needs assessment
to determine the extent of losses caused by typhoons
Viet Nam
Ondoy and Pepeng and to identify recovery and
reconstruction measures. Partnership priorities. ADB’s country partnership
strategies and operational programs continued to focus
Thailand on economic growth, social development, and environ-
Southeast Asia
mental management. ADB’s engagement achieved these
Partnership priorities. The country partnership strategy priorities by enhancing transport networks and improving
for 2007−2011 remained aligned with the government’s management, increasing power supply and connectivity,
policies and action plans to promote long-term, sustainable developing the private sector, establishing a diversified
economic growth and social development. The GMS market-based financial system, improving efficiency
Highway Expansion Project aimed to reduce logistics in public administration and governance, and fostering
costs along the East–West and Southern economic corridors regional cooperation and integration. ADB approved a
and to help the government plan an intercity motorway $630 million multitranche financing facility for reform of
network. state-owned enterprises.
Impact of operations. An ADB-supported capital Impact of operations. ADB provided a $500 million
market master plan laid the basis for the government’s Countercyclical Support Facility to augment the
government’s existing measures to ameliorate the
adverse impacts of the global economic crisis. Trade and
ADB supported Thailand’s strategic economic development increased dramatically with the
completion of ADB-supported road construction and
direction to deepen its capital
rehabilitation and bridge construction, and the imple-
market, and a study to expand mentation of a cross- border agreement and simplified
mass rapid transit in Bangkok border formalities in the East–West Economic Corridor.
88 Asian Development Bank
Chapter 12
NONSOVEREIGN
Nonsovereign Operations
OPERATIONS
Amid challenging financial conditions in the wake of the global financial crisis,
nonsovereign operations came under increased due diligence to reduce risks. Private
sector projects approved in 2009 included a major boost to trade financing after
capital markets came to a standstill. ADB focuses on nonsovereign projects with
significant development impact, and its target is for half of total lending by 2020 to
support the development of a healthy private sector.
Annual Report 2009 89
A
DB’s nonsovereign operations are integral to The bulk of ADB’s nonsovereign operations emanate
the objectives of Strategy 2020, which include a from the Private Sector Operations Department (PSOD).
target of 50% of ADB’s lending operations by 2020 In 2009, two nonsovereign public sector projects with total
in support of private sector development and private financing of $190.5 million were processed by the South Asia
sector operations. ADB focuses on nonsovereign projects and East Asia Departments of ADB. PSOD assists devel-
with significant development impact as well as on initia- oping member countries that may have limited access to
tives that stimulate the private sector and lead to acceler- private capital by financing projects with significant
ated, sustainable, and inclusive growth. development impact. The assistance is provided through
I
nternational trade was in free-fall at the beginning of 59% helped small and medium-sized enterprises—double
2009. Banks had lost confidence in each other and, as the average since inception—and half backed trade between
concerns about the deepest recession since the 1930s developing member countries. Ranging from as little as
reverberated around the world, lenders were so averse to $6,000 to $79 million, they supported exports as varied as
risk that the once-vibrant trade finance network shut down. agricultural commodities, medicines, electrical goods, oil,
Asia’s export-dependent economies were caught between a and a drilling rig.
rock and a hard place. Bangladesh, Pakistan, and Viet Nam occupied large
Amid grave concern that the lack of trade finance would chunks of the portfolio. Other major markets included
impede economic recovery, ADB ramped up its $150 million Azerbaijan and Sri Lanka, and the program also operates in
Trade Finance Facilitation Program to $1 billion. Through Afghanistan, Cambodia, Indonesia, Nepal, and Tajikistan.
the power of leveraging with partner banks, the program’s The number of issuing banks in 2009 increased from 50
loans and guarantees on letters of credit for Asian exporters at the start of the year to 73, while 89 banks that confirm
supported $1.9 billion in trade last year—almost double the letters of credit for trading parties are now in the program
target—with ADB exposure soaring 230% year on year. The after 18 joined during the year. Negotiations are ongoing
program is expected to help generate a further $13 billion of with other banks as ADB targets an expansion of the program
trade by the end of 2013. in 2010, including an aggressive push into Central Asia.
“Making it easier for companies to get hold of trade The much-anticipated recovery in the global economy
Nonsovereign Operations
finance should boost their business and encourage them is driving up trade volumes, particularly in Asia, and that
to expand and create jobs. This is critical to sustainable is spurring a blossoming in the demand for and supply of
long-term economic growth and to the poverty reduction the trade finance needed to fuel it. With ADB expecting
that goes along with it,’’ said Robert van Zwieten, director the economy of developing Asia to expand 6.6% this year,
against 1.6% growth in the United States and further likely
stagnation in the Eurozone, the Trade Finance Facilitation
Program will play a small but growing part of a brighter
future for the region.
ADB has set the standard for the construction of “good dams”
nonsovereign loans to private sector entities without Newly approved financial assistance reached
sovereign counterguarantees; equity investments; and $1.9 billion, consisting of $443 million in direct loans,
credit enhancement products, including guarantees and $220 million in equity investments, $72 million in partial
B-loans (see Glossary), where ADB arranges a complete credit risk guarantees, $276 million in B-loans, and $850 mil-
financing package for a project with participation from local lion in TFFP loans and guarantees. The average size of proj-
and international commercial banks and other financial ects decreased from $155 million for 16 projects in 2008
institutions. Private entities seeking assistance from ADB to $92 million for 11 projects in 2009 (excluding TFFP).
benefit not only from financial assistance but also from the Nonsovereign operations continue to support Strate-
expertise and guidance of the ADB team. Assistance is gy 2020’s three development agendas: inclusive economic
focused principally in the finance sector and in infrastruc- growth, environmentally sustainable growth, and regional
ture. integration. In connection with environmentally sustain-
In 2009, nonsovereign operations came under revised able growth, five projects were in the area of renewable
due diligence guidelines and credit procedures, which energy, at a cost of $426 million and representing 23%
aimed to enhance the internal risk environment. Mean- of approvals. Other approvals consisted of a $200 million
while, the external market environment continued to be waste management project representing 11%, a $120
characterized by challenging economic and financial condi- million conventional energy project accounting for 6% of
tions in the wake of the global economic crisis. Against this overall operations, TFFP representing 46%, three finance
backdrop, the Board of Directors approved nine private sector projects representing 13%, and one project in tele-
Nonsovereign Operations
sector projects, and a major boost in scope and amount for the communications (1%).
Trade Finance Facilitation Program (TFFP). TFFP oper- ADB’s nonsovereign operations focused on two of
ates directly in response to the economic and financial the core areas of operations identified in Strategy 2020:
crisis and to the deterioration in trade and trade finance infrastructure (with particular emphasis on energy) and
specifically, and supports Strategy 2020’s regional integra- finance. Strategic interventions through public–private
tion agenda. partnerships focused on renewable energy and other
infrastructure sectors. For example, ADB agreed to
invest $40 million in a new public–private joint venture
company that will develop, construct, and operate a
Nonsovereign operations continue portfolio of renewable energy projects in India, with
to support Strategy 2020’s three an initial focus on wind power and small-scale hydro-
development agendas: inclusive electric power (see Boosting India’s Wind Power,
p. 91). ADB finances commercially viable infrastructure
economic growth, environmentally
projects that are structured or capable of being struc-
sustainable growth, and regional tured as public–private partnerships. An example is
integration an equity investment of $40 million in an Indonesian
Annual Report 2009 91
W
ith their 73-meter “stalks” and 26-meter “petals,” The company borrowed about $65 million (Rs3 billion)
the wind turbines look from afar like giant plants from ADB (including cofinancing arranged by ADB). The 13-
sprouting from the landscape in a remote corner year loan helped the company fix its borrowing costs and
of India’s Maharashtra state. From isolated locations like this, avoid the risk rising interest rates might have on its wind power
the turbines feed nearly 80 megawatts of electricity—enough investments at Khandke in Ahmednagar district, Bramanvel in
to power several thousand households—into the state grid. Dhulia district, and Sadawaghapur in Satara district.
Like most rural areas in energy-starved India, where during The government’s goal of “Power for All by 2012”
peak hours demand outstrips supply by some 20%, villages in requires renewable sources—solar, biomass, small hydro,
Maharashtra commonly experience power outages of up to and wind—to be developed. In Maharashtra, the state
12 hours a day. Without electricity, the villagers are virtually government is adopting a carrot-and-stick approach. It
cut off from the outside world. pays a higher rate for wind energy but requires power
Tata Power is one of the major power utilities working to distributors to procure at least 6% of their input to the
expand generation capacity to help make the nation’s power state grid from renewable energy sources by 2010, or face
supply more reliable. Encouraged by a loan from the private penalties. However, wind technology is still relatively costly
sector operations of ADB, which supports the government’s and remains unattractive to some commercial enterprises.
Through its Carbon Market Initiative—a financing
scheme that helps developing countries tap the global carbon
market—ADB is also helping the Khandke project qualify as
a Clean Development Mechanism project under the Kyoto
Protocol. Under this mechanism, ADB is prepared to provide
up-front financing by purchasing up to 50% of Tata Power’s
anticipated certified emission reductions. These payments will
add significantly to the company’s earnings from electricity sales.
Life for India’s large rural population will improve hugely
with greater access to electricity. Meanwhile, Tata Power
expects to benefit both from lessons learned and cost
Windmills grace the landscape in Maharashtra state, where ADB
backs the government’s push to put the economy on a low-carbon reductions from advances in turbine technology as it expands
its wind power investments.
Nonsovereign Operations
footing
infrastructure financing facility company and a public percentage of the overall financing for small transactions
sector loan of $100 million to a fully government-owned with a very high development impact. Given this overall
holding company, which will in turn relend the entire lending restriction for the private sector, cofinancing is
amount to the financing facility company. an important instrument for ADB to enhance support
Nonsovereign projects were administered in 23 for the private sector. ADB has various guarantee and
developing member countries, including ADB’s first cofinancing products, and demand for them has increased
private sector intervention in Papua New Guinea, which substantially of late, particularly since the recent
was approved, signed, and disbursed in 2009. financial market turmoil. In this regard, PSOD will
continue to build close and collaborative relationships
with the financial community, thereby enhancing the
COFINANCING opportunities to avail of these products.
ADB applied its cofinancing instruments to mobilize
ADB’s private sector policy restricts direct project cofinancing with several partners, catalyzing $220 million
funding to 25% of the total cost. However, in exceptional of direct new money for developing member countries for
circumstances, ADB will directly support a higher two projects with an aggregate cost of $2.2 billion.
92 Asian Development Bank
Chapter 13
FINANCE AND
Finance and Administration
ADMINISTRATION
Our People Strategy was prepared to help ADB recruit, retain, manage, and develop
the human resources needed under Strategy 2020. Staff members’ management and
technical skills were upgraded. Business processes were streamlined.
Annual Report 2009 93
The Board also approved lowering the vesting period influenza A (H1N1). Although the systems are no longer
from 10 to 5 years for staff retirement plan participants who active, the team can reactivate them as necessary.
were hired on or after 1 October 2006. This change is effec-
tive as of 1 January 2010 and is retroactive for participants
hired on or after 1 October 2006. Thus, staff retirement Internal Administrative
plan participants who have met the 5-year service require- Expenses
ment are eligible for a pension. For service of less than
5 years, participants will receive a lump-sum withdrawal Internal administrative expenses totaled $379.0 million,
benefit upon termination of employment. compared to the net internal administrative budget of
ADB also upgraded its relocation package and field $388.9 million. Of the total savings of $9.9 million, about
office benefits for professional staff members assigned to 2% of the 2009 internal administrative expenses budget
field offices so that they remain competitive with other amounting to $7.7 million is being carried forward to
international financial institutions, especially in non-family 2010. The overruns in certain budget items in the oper-
and hardship duty stations, effective 1 June 2009. ational and administrative budget categories were fully
met through reallocations within the same budget catego-
ries. The savings were mainly attributable to staff vacan-
Pandemic Preparedness Plan cies and lower-than-budgeted use for relocation, business
travel, office occupancy, and contractual services. These
The pandemic crisis management team set up screening savings were partly offset by overruns in staff benefits,
procedures at ADB gates, a screening center, and a because of additional contribution to the staff retirement
medical hotline to respond to the outbreak of new fund to meet increasing funding requirements, and in
depreciation, primarily because of completion of certain
information technology projects under the Information
The net budget for internal
System and Technology Strategy, Phase II, for which
administrative expenses in 2010 depreciation began in 2009.
is $439.5 million, a rise of 13% For 2010, the net internal administrative expenses
budget is $439.5 million, including the budget for the
over the 2009 budget, including
Independent Evaluation Department of $8.4 million. The
$8.4 million for the Independent increase of $50.6 million, or 13% over the 2009 budget,
Evaluation Department reflects a price increase of 5% and a volume growth of 8%.
Finance and Administration
A resident mission staff member consults with farmers in Bajhang district, Nepal
Annual Report 2009 95
Administrative Services
The Office of Administrative Services (OAS) continued
to improve overall service delivery, and focused on
equipping staff with upgraded management and tech-
nical skills. Researchers use the Phnom Penh Plan Learning Resource
Center, ADB Cambodia Resident Mission
In May, OAS and the Regional and Sustainable
Development Department jointly prepared the second printers, and rationalized the use of supplies. The role
sustainability report. OAS obtained ISO (International of the iLink information coordinators was strengthened,
Organization for Standardization) 14001 and OSHAS and the iLink Digest, a monthly bulletin of excerpts
(Occupational Safety and Health Assessment Series) of sector-specific research, was launched. Finally, in
18001 recertification as part of its environmental health October, eStar, the electronic repository system, cele-
and safety management system. OAS also undertook an brated its first anniversary and, by the end of the year,
energy audit and launched green procurement guidelines, contained more than 200,000 documents.
these activities being steps in obtaining Leadership in OAS adopted a pandemic crisis management plan
Energy and Environmental Design, or green building for meeting health emergencies and demonstrated a
certification. high level of emergency response preparedness during
OAS improved the microfilming process, streamlined several typhoons.
communication and transport services, automated OAS support to resident missions focused on office
information technology inventory management, and building, property, and vehicle insurance, safety, and secu-
performed an as-is business process mapping exercise rity. Administrative policies affecting staff members posted
to determine which of OAS business processes could to field offices were likewise streamlined. OAS continued
be further streamlined, automated, or otherwise made its headquarters rehabilitation program by constructing a
systems. Disaster recovery tests were conducted regular- time (inclusive of time spent with the borrowers,
ly, and remote access was provided for staff performing executing agencies, operations departments, and resi-
critical payment functions. dent missions) from the year before, despite an increase
Integrated business processes and access by staff to of 15.5% in transaction volume.
appropriate information were also key priorities. Business By the end of the year, the disbursement processing
process modeling was introduced as a part of enterprise function for loans had been delegated to seven resident
architecture initiatives for managing ADB’s business missions. Seven other remote resident missions with
processes in a single repository. a smaller portfolio also assisted in the initial review of
borrowers’ disbursement requests, and helped expedite
The Operations Dashboard was disbursement through electronic submission of with-
drawal applications from the resident mission directly
launched to provide operations
to CTL. The increased role of the resident missions in
departments with a “one-stop disbursement improved communication with borrowers
shop” for online reports and executing agencies.
Annual Report 2009 97
CTL strengthened its commitment to help build The increased role of the resident
the capacity of developing member country borrowers
and executing agencies, and of disbursement staff at the
missions in disbursement improved
resident missions. CTL conducted 36 disbursement and communication with borrowers and
loan accounting training seminars for over 1,000 borrowers executing agencies
and executing agency officials, and conducted consulta-
tive meetings with the regional departments to better
understand their needs and improve coordination. together with the staff development group, strengthened
CTL developed a financial tool for loan accounting and staff training on IFRS.
servicing (eC-LAS) to help borrowers, executing agencies, CTL facilitated Management’s assertion and the
and ADB project teams process and administer loans. CTL external auditor’s attestation on internal controls for
started distributing the eC-LAS and training users in the financial reporting, which ADB started in fiscal year
People’s Republic of China, Pakistan, the Philippines, and 2008, for better corporate governance. The assertion and
Uzbekistan. CTL translated the eC-LAS into Chinese and attestation for fiscal year 2009 was accomplished with an
started the Russian version. In addition to a website on loan unqualified opinion from the external auditor, Deloitte
disbursements, CTL started developing a website on loan & Touche. This initiative strengthened staff awareness
accounting and servicing for borrowers, executing agencies, of internal controls. Training on internal controls, risk
ADB staff, and other organizations concerned. assessments, and testing skills was strengthened.
CTL, with the assistance of OIST, implemented the
financial and management accounting system for resident
Financial Reporting missions to improve work efficiency, data reliability, and
internal controls. As of 31 December, 24 of the 27 resident
CTL revised its accounting policies, especially with regard missions and regional offices were using the system. CTL
to market valuation of financial instruments. CTL also provided accounting support for new trust funds, including
started a preliminary study on the International Financial the Asia Pacific Carbon Fund, the Future Carbon Fund, the
Reporting Standards (IFRS), considering a possible tran- Financing Partnership Facilities, and the Climate Change
sition to IFRS from the United States generally accepted Fund, to ensure that ADB meets its fiduciary responsibility
accounting principles (US GAAP)–based standards. CTL, as the custodian of the funds it administers.
Systems were improved for managing distribution of staff among job levels
98 Asian Development Bank
Chapter 14
APPENDIXES
APPENDIX 1 Members, Capital Stock, and Voting Power 99
Appendix 2 Resolutions of the Board of Governors
Adopted in 2009 100
Appendix 3 Selected Policy, Strategy, and Financial
Papers Discussed by the Board in 2009 100
APPENDIX 4 Board of Governors 101
APPENDIX 5 Board of Directors and Voting Groups 103
Appendix 6 Committees of the Board of Directors 104
APPENDIX 7 ADB Institute Advisory Council 105
APPENDIX 8 Organizational Structure 106
APPENDIX 9 Former ADB Presidents and Vice-Presidents 107
APPENDIX 10 Summary of Internal Administrative Expenses –
2009 and Budget for 2010 108
APPENDIX 11 Management and Staff Representation
of ADB Members 109
APPENDIX 12 Number of Authorized Positions in
Appendixes
APPENDIX 1
Members, Capital Stock, and Voting Power
(as of 31 December 2009)
Appendixes
the capital stock of ADB.
Papua New Guinea 1971 0.085 0.367 b The total voting power of each member consists of the sum of
Philippines 1966 2.168 2.033 its basic votes and proportional votes. The basic votes of each
Samoa 1966 0.003 0.301 member consist of such number of votes as results from the equal
Singapore 1966 0.310 0.546 distribution among all members of 20% of the aggregate sum
of the basic votes and proportional votes of all members. The
Solomon Islands 1973 0.006 0.303
number of proportional votes of each member is equal to the
Sri Lanka 1966 0.528 0.721 number of shares of the capital stock of ADB held by that member.
Taipei,China 1966 0.991 1.091
Tajikistan 1998 0.782 0.924
Thailand 1966 3.716 3.271
Timor-Leste 2002 0.009 0.306
Tonga 1972 0.004 0.301
Turkmenistan 2000 0.230 0.483
100 Asian Development Bank
Appendix 2
Resolutions of the Board of Governors Adopted in 2009
Appendix 3
Selected Policy, Strategy, and Financial Papers Discussed by the Board in 2009
SUBJECT DATE
ADB’s Approach to Operations in Sri Lanka in the New Post-Conflict Environment 28 September
Review of ADB’s Exposure Limits on Nonsovereign Operations 7 October
Annual Review of Salaries and Benefits for Professional Staff 20 October
ADB’s Approach to Assisting the Pacific, 2010–2014 19 November
Borrowing Program for 2010 10 December
Budget of the Asian Development Bank for 2010 17 December
Asian Development Bank Institute—Three-Year Rolling Work Program, 2010–2012 and Budget for 2010 17 December
Special Capital Expenditure Budget Proposal:
Expansion of ADB Headquarters Building and Selected Resident Missions 17 December
Annual Report 2009 101
APPENDIX 4
Board of Governors
(as of 2 February 2010)
Appendixes
Lao People’s Democratic Republic Somdy Douangdy Somphao Phaysith
Luxembourg Luc Frieden Arsène Jacoby
Malaysia Dato’ Sri Mohd Najib Bin Tun Haji Abdul Razak Tan Sri Dr. Wan Abdul Aziz bin Wan
Abdullah
Maldives Ali Hashim Ahmed As-ad
Marshall Islands Jack J. Ading Amon Tibon
Micronesia, Federated States of Finley S. Perman Lorin Robert
Mongolia Bayartsogt Sangajav Purevdorj Lkhasuren
Myanmar Hla Tun Daw Myo Nwe
Nauru Kieren Keke, MP Tim Drown
Nepal Surendra Pandey Rameshore Prasad Khanal
The Netherlands Vacant Yoka Brandt
102 Asian Development Bank
APPENDIX 5
Board of Directors and Voting Groups
(as of 2 February 2010)
Marwanto Harjowiryono1 C.J. (Stan) Vandersyp Cook Islands, Fiji Islands, Indonesia,
Kyrgyz Republic, New Zealand, Samoa, Tonga
Ashok K. Lahiri Md. Aminul Islam Bhuiyan Afghanistan, Bangladesh, Bhutan, India,
Lao People’s Democratic Republic, Tajikistan,
Turkmenistan
Michele Miari Fulcis Jose Miguel Cortes2 Belgium, France, Italy, Portugal, Spain, Switzerland
Jaejung Song5 Vacant Republic of Korea; Papua New Guinea; Sri Lanka;
Taipei,China; Uzbekistan; Vanuatu; Viet Nam
Chaiyuth Sudthitanakorn6 Govinda Bahadur Thapa7 Brunei Darussalam, Malaysia, Myanmar, Nepal,
Singapore, Thailand
Appendixes
Yingming Yang9 Xiuzhen Guan10 People’s Republic of China
Appendix 6
Committees of the Board of Directors
APPENDIX 7
ADB Institute Advisory Council
(as of 31 December 2009)
Appendixes
106 Asian Development Bank
APPENDIX 8
Organizational Structure1 Board of Governors
(as of 28 February 2010)
Board of DIRECTORS
OFFICE OF THE COMPLIANCE INDEPENDENT EVALUATION
REVIEW PANEL2 DEPARTMENT3
B. Purdue, Secretary President H.S. Rao, Director General
H. Kuroda
MANAGING DIRECTOR
GENERAL
R. Nag
Vice-President
asian development (Knowledge Management and Vice-President Vice-President Vice-President
bank institute Sustainable Development) (Operations 1) (Operations 2) (Finance and Administration)
M. Kawai, Dean U. Schäfer-Preuss X. Zhao C. Lawrence Greenwood, Jr. B. Lohani
K. Nakamori pakistan
Resident Director General Resident Mission
R. Stroem, Country Director PACIFIC DEPARTMENT
(vacant), Director General
APPENDIX 9
Former ADB Presidents and Vice-Presidents
(as of 31 December 2009)
PRESIDENTS
Takeshi Watanabe 24 November 1966–24 November 1972
Shiro Inoue 25 November 1972–23 November 1976
Taroichi Yoshida 24 November 1976–23 November 1981
Masao Fujioka 24 November 1981–23 November 1989
Kimimasa Tarumizu 24 November 1989–23 November 1993
Mitsuo Sato 24 November 1993–15 January 1999
Tadao Chino 16 January 1999–31 January 2005
VICE-PRESIDENTS
C.S. Krishna Moorthi 19 December 1966–31 March 1978
A.T. Bambawale 1 April 1978–28 October 1985
M. Narasimham 1 November 1985–31 July 1988
S. Stanley Katz 1 April 1978–28 September 1990
In Yong Chung 1 August 1988–31 July 1993
William R. Thomson 1 October 1990–30 June 1994
Günther G. Schulz 1 April 1983–30 June 1995
Bong-Suh Lee 1 August 1993–31 July 1998
Pierre Uhel 1 July 1995–24 November 1998
Peter H. Sullivan 6 July 1994–20 September 2000
Myoung-Ho Shin 1 August 1998–31 July 2003
John Lintjer 18 January 1999–16 January 2004
Joseph B. Eichenberger 15 December 2000–23 December 2005
Geert H.P.B van der Linden 1 September 2003–31 August 2006
Khempheng Pholsena 5 April 2004–4 April 2007
Liqun Jin 1 August 2003–18 July 2008
Appendixes
108 Asian Development Bank
APPENDIX 10
Summary of Internal Administrative Expenses – 2009 and Budget for 2010
($ thousand)
2009
After Budget
Item Budget Transfersa Actual 2010
b Includes $1,509,000 in expenses associated with Japan Special Fund ($1,426,000) and Japan Scholarship Program ($83,000). Excludes the following adjustments incorporated in the
financial statements to comply with the generally accepted accounting principles, and recording and reporting requirements: (i) postretirement medical benefits ($5,083,000); (ii) actuarial
assessment of costs associated with pension benefit obligations ($18,195,000); (iii) expenses charged to the budget carryover ($4,622,000); (iv) accumulated compensated absences
($1,854,000); (v) accrued resettlement and repatriation allowances ($2,578,000) and severance payments ($605,000); and (vi) other miscellaneous adjustments ($186,000). Total adjusted
administrative expenses of $418,108,000 reflected in the financial statements is allocated as OCR, $193,638,000 ($216,035,000 less $22,397,000 of front-end fee); ADF, $200,564,000,
and Japan Special Fund and Japan Scholarship Program, $1,509,000.
c This amount ($5,981,000) reflects the estimated total expenses apportioned for administering the trust funds during the year.
d Net IAE budget for 2010 consist of $8,363,000 for the Independent Evaluation Department (IED) and $431,125,000 for ADB excluding IED.
e In 2006, the Board approved introduction of a budget carryover of up to 2% of net IAE budget to the next year, beginning with the 2007 budget. Accordingly, $7.7 million (about 2% of
the 2009 net IAE budget) has been carried over to 2010.
Annual Report 2009 109
APPENDIX 11
Management and Staff Representation of ADB Members
(as of 31 December 2009)
National National
Officer/ Officer/
Professional Administrative Professional Administrative
Member Management Staff Staff Total Member Management Staff Staff Total
Regional Nonregional
Afghanistan 0 0 11 11 Austria 0 8 0 8
Armenia 0 0 5 5 Belgium 0 6 0 6
Australia 0 52 7 59 Canada 0 43 0 43
Azerbaijan 0 0 4 4 Denmark 0 6 0 6
Bangladesh 0 8 46 54 Finland 0 5 1 6
Bhutan 0 3 0 3 France 0 28 0 28
Brunei Darussalam 0 0 0 0 Germany 1 35 2 38
Cambodia 0 0 21 21 Ireland 0 1 0 1
China, People's Italy 0 16 0 16
Republic of 1 59 40 100 Luxembourg 0 2 0 2
Cooks Islands 0 0 0 0 The Netherlands 0 15 0 15
Fiji Islands 0 2 11 13 Norway 0 4 0 4
Georgia 0 1 5 6 Portugal 0 3 0 3
Hong Kong, China 0 5 0 5 Spain 0 8 0 8
India 0 69 44 113 Sweden 0 9 0 9
Indonesia 0 36 37 73 Switzerland 0 5 0 5
Japan 1 130 4 135 Turkey 0 5 0 5
Kazakhstan 0 5 7 12 United Kingdom 0 32 0 32
Kiribati 0 0 0 0 United States 1 119 2 122
Korea, Republic of 0 41 1 42 Subtotal 2 350 5 357
Kyrgyz Republic 0 5 8 13 Total 5 927 1,670 2,602
Lao People's
Democratic Republic 0 1 14 15
Malaysia 0 27 0 27
Maldives 0 0 0 0
Marshall Islands 0 0 0 0
Micronesia, Federated
States of 0 0 0 0
Mongolia 0 3 11 14
Myanmar 0 2 0 2
Nauru 0 0 0 0
Nepal 1 6 27 34
New Zealand 0 15 0 15
Pakistan 0 22 39 61
Palau 0 1 0 1
Papua New Guinea 0 1 7 8
Appendixes
Philippines 0 31 1,231 1,262
Samoa 0 1 0 1
Singapore 0 8 0 8
Solomon Islands 0 0 0 0
Sri Lanka 0 11 21 32
Taipei,China 0 5 0 5
Tajikistan 0 2 9 11
Thailand 0 10 9 19
Timor-Leste 0 1 3 4
Tonga 0 3 0 3
Turkmenistan 0 0 0 0
Tuvalu 0 0 1 1
Uzbekistan 0 5 16 21
Vanuatu 0 1 0 1
Viet Nam 0 5 26 31
Subtotal 3 577 1,665 2,245
110 Asian Development Bank
APPENDIX 12
Number of Authorized Positions in Resident Missionsa
(2009)
Analysts and
Professional National Administrative
Country Staff Officers Staff Total
Resident Missions
Bangladesh 8 15 23 46
India 14 21 24 59
Nepal 3 13 12 28
Sri Lanka 4 12 8 24
Afghanistan 7 7 7 21
Azerbaijan 1 4 1 6
Kazakhstan 3 5 6 14
Kyrgyz Republic 2 5 3 10
Pakistan 10 18 20 48
Tajikistan 3 5 6 14
Uzbekistan 3 5 7 15
Armenia – 2 3 5
Georgia – 2 3 5
Turkmenistan – 3 3
Turkey – 1 – 1
China, People’s Republic of 11 19 21 51
Mongolia 4 6 4 14
Cambodia 5 9 7 21
Indonesia 12 15 16 43
Lao, People’s Democratic Republic 4 8 5 17
Philippines 4 3 4 11
Thailand 7 5 3 15
Viet Nam 12 14 10 36
Pacific Liaison and Coordination Office in Sydneyb 3 5 4 12
Pacific Subregional Office in Fiji Islandsc 5 4 8 17
Papua New Guinea 3 4 5 12
Special Liaison Office in Timor-Leste 2 2 1 5
Resident Offices
Europe 2 1 2 5
Japan 2 1 2 5
North America 2 1 2 5
Subtotal 6 3 6 15
APPENDIX 13
Growth in Resident Missions (RMs) and Authorized Staff Positions at RMs
Total Authorized Positions at RM 279 317 361 389 437 448 490 520 553
Total Authorized Positions at ADB 2,055 2,116 2,187 2,229 2,310 2,340 2,381 2,498 2,550
PS and NO positions at ADB 1,020 1,071 1,153 1,189 1,253 1,271 1,304 1,378 1,418
Professional Staffd 729 759 791 797 824 824 836 875 892
National Officerse 291 312 362 392 429 447 468 503 526
Administrative Staff 1,035 1,045 1,034 1,040 1,057 1,069 1,077 1,120 1,132
a Includes Special Office in Timor-Leste, but excludes Thailand Resident Mission (TRM).
b Excludes Thailand Resident Mission (TRM); Azerbaijan Resident Mission (AZRM); Pacific Subregional Office in Fiji Islands (SPSO); and Pacific Liaison and Coordination
Office (PLCO) in Sydney, Australia.
c Includes outposted positions.
d Excludes Young Professionals and Board of Directors.
e Classification of national officers and administrative staff started only in 2003.
Appendixes
112 Asian Development Bank
APPENDIX 14
Selected Knowledge Products of ADB
ADB produced many knowledge products during 2009 with operational departments producing numerous studies and building knowledge into
operations. In addition, large numbers of technical assistance and regional technical assistance reports generated and disseminated knowledge. In
addition to that extensive work, the four designated knowledge departments—Asian Development Bank Institute, Economics and Research Department,
Office of Regional Economic Integration, and Regional and Sustainable Development Department—together with the Independent Evaluation
Department, the Department of External Relations, and four regional departments—Central and West Asia Department, East Asia Department, Pacific
Department, and Southeast Asia Department—produced the following products in 2009.
ASIAN DEVELOPMENT BANK INSTITUTE Jonung, Lars. Financial Crisis and Crisis Management in Sweden. Lessons for
Today. ADBI Working Paper Series No. 165. November.
Books
Katada, Saori N. Political Economy of East Asian Regional Integration and
ADB and ADBI. Infrastructure for a Seamless Asia. Tokyo: ADBI.
Cooperation. ADBI Working Paper Series No. 170. December.
ADBI. ADBI: Year in Review. Tokyo: ADBI.
Kawai, Masahiro and Fan Zhai. The People’s Republic of China-Japan-United
Brooks, D. H., and D. Hummels (eds). Infrastructure’s Role for Lowering Trade
States Integration Amid Global Rebalancing: A Computable General
Costs: Building for Trade. Cheltenham, United Kingdom: Edward Elgar.
Equilibrium Analysis. ADBI Working Paper Series No. 152. October.
Kawai, M., and S. Stone (eds.). Asia’s Contribution to World Economic
Kawai, Masahiro and Ganeshan Wignaraja. Asian FTAs: Trends and
Growth and Stability. Tokyo: ADBI.
Challenges. ADBI Working Paper Series No. 144. August.
Kawai, Masahiro and Ganeshan Wignaraja. The Asian “Noodle Bowl”:
Working Papers
Is It Serious for Business? ADBI Working Paper Series No. 136. April.
Adhikari, Bhim. Market-Based Approaches to Environmental Management: A
Kawai, Masahiro and Shinji Takagi. Why Was Japan Hit So Hard by the Global
Review of Lessons from Payment for Environmental Services in Asia. ADBI
Financial Crisis? ADBI Working Paper Series No. 153. October.
Working Paper Series No. 134. March.
Kawai, Masahiro, Peter Petri, and Elif Sisli-Ciamarra. Asia in Global
Athukorala, Prema-chandra and Archanun Kohpaiboon. Intra-Regional Trade
Governance: A Case for Decentralized Institutions. ADBI Working Paper
in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges. ADBI
Series No. 157. October.
Working Paper Series No. 177. December.
Kawai, Masahiro. Reform of the International Financial Architecture:
Basir, Amir Akmar. Payment Systems in Malaysia: Recent Developments and
An Asian Perspective. ADBI Working Paper Series No. 167. November.
Issues. ADBI Working Paper Series No. 151. September.
Kawai,Masahiro and Fan Zhai. PRC-Latin America Economic Cooperation:
Batten, Jonathan A., Warren P. Hogan, and Peter G. Szilagyi. Foreign Bond
Going beyond Resource and Manufacturing Complementarity. ADBI
Markets and Financial Market Development: International Perspectives.
Working Paper Series No. 137. April.
ADBI Working Paper Series No. 173. December.
Kim, Soyoung and Doo Yong Yang. International Monetary Transmission and
Bhattacharyay, Biswa and Prabir De. Restoring the Asian Silk Route: Toward an
Exchange Rate Regimes: Floaters vs. Non-Floaters. ADBI Working Paper
Integrated Asia. ADBI Working Paper Series No. 140. June.
Series No. 181. December.
Bhattacharyay, Biswa. Infrastructure Development for ASEAN Economic
Kumar, Rajiv and Pankaj Vashisht. The Global Economic Crisis: Impact on India
Integration. ADBI Working Paper Series No. 138. May.
and Policy Responses. ADBI Working Paper Series No. 164. November.
Börsch-Supan, Axel and Alexander Ludwig. Old Europe Ages. Can it Still
Liu, Xiangfeng. Impacts of the Global Financial Crisis on Small and Medium
Prosper? ADBI Working Paper Series No. 168. November.
Enterprises in the People’s Republic of China. ADBI Working Paper Series
Bosworth,Barry and Aaron Flaaen. America’s Financial Crisis: The End of an No. 180. December.
Era. ADBI Working Paper Series No. 142. July.
Lu, Ming and Hong Gao. When Globalization Meets Urbanization: Labor
Bown, Chad and Rachel McCulloch. US-Japan and US-PRC Trade Conflict: Market Reform, Income Inequality, and Economic Growth in the People’s
Export Growth, Reciprocity, and the International Trading System. ADBI Republic of China. ADBI Working Paper Series No. 162. November.
Working Paper Series No. 158. November.
Ma, Alyson, Ari Van Assche, and Chang Hong. Global Production Networks
Cheong, Inkyo and Jungran Cho. The Impact of Free Trade Agreements (FTAs) and the People’s Republic of China’s Processing Trade. ADBI Working
on Business in the Republic of Korea. ADBI Working Paper Series No. 156. Paper Series No. 175. December.
October.
Mondeil, Marie and Sununtar Setboonsarng. Enhancing Biodiversity Through
Cho, Dong Chul. The Republic of Korea’s Economy in the Swirl of Global Market-Based Strategy: Organic Agriculture. ADBI Working Paper Series
Crisis. ADBI Working Paper Series No. 147. August. No. 155. October.
Das, Ram Upendra. Imperatives of Regional Economic Integration in Asia in Moon, Hyungpyo. Demographic Changes and Pension Reform in the Republic
the Context of Developmental Asymmetries: Some Policy Suggestions. of Korea. ADBI Working Paper Series No. 135. April.
ADBI Working Paper Series No. 172. December.
Morgan, Peter. The Role and Effectiveness of Unconventional Monetary Policy.
Dean, Judith M., Mary E. Lovely, and Jesse Mora. Decomposing PRC-Japan-US
Appendixes
Stone, Susan and Ginalyn Komoto. Determining Poverty Impacts on EAST ASIA DEPARTMENT
Lao People’s Democratic Republic and Cambodia: Reconciling Household ADB Briefs
and GTAP Data. ADBI Working Paper Series No. 141. July.
Fan Zhai, Tun Lin, Enerelt Byambadorj. A General Equilibrium Analysis of
Strutt, Anna and Susan Stone. Transport Infrastructure and Trade Facilitation the Impact of Climate Change on Agriculture in the People’s Republic of
in the Greater Mekong Subregion. ADBI Working Paper Series No. 130. China.
January.
Thorbecke, Willem. An Empirical Analysis of ASEAN’s Labor-Intensive Exports. Awareness-Raising Materials
ADBI Working Paper Series No. 166. November. 2008 East Asia Department Knowledge Management Initiatives
Thorbecke, Willem. An Empirical Analysis of East Asian Computer Exports. Impact of the Massive Carbon Intensity Cut
ADBI Working Paper Series No. 160. November. Knowledge Showcase: Addressing Energy Efficiency with Virtual Power Plans
Titiheruw, Ira S. and Raymond Atje. Malaysia and the Global Crisis: Impact, PRC Response to the Crisis
Response, Rebalancing Strategies. ADBI Working Paper Series No. 149. The Economic Crisis and China’s Human Resource Challenge
August. Understanding Urban Water Tariff in the PRC
Todo, Yasuyuki, Weiying Zhang, and Li-An Zhou. Knowledge Spillovers from What Lies Ahead
FDI in the People’s Republic of China: The Role of Educated Labor in
Multinational Enterprises. ADBI Working Paper Series No. 174. December. Policy Briefs
Tsai, Ying Yi. Strategic Choice of Freight Mode and Investments in Transport Country Gender Assessment
Infrastructure within Production Networks. ADBI Working Paper Series No. Observations and Suggestions on Improving Environment Management in the
132. March. PRC: Environmental Impact Assessment of Development Plans
Uchikawa, Shuji. Small and Medium Enterprises in Japan: Surviving the Long- Observations and Suggestions on Low-Income Housing Policies: Lessons from
Term Recession. ADBI Working Paper Series No. 169. November. International Experience
Wall, Larry D. Prudential Discipline for Financial Firms: Micro, Macro, and Observations and Suggestions on Managing International Capital Flow to PRC
Market Structures. ADBI Working Paper Series No. 176. December. Observations and Suggestions on Rebalancing Growth in PRC:
Zhuang, Juzhong and Fan Zhai. Agricultural Impact of Climate Change: A Macroeconomic Policy Recommendations
General Equilibrium Analysis with Special Reference to Southeast Asia. Observations and Suggestions on Rebalancing Growth in PRC: Services Sector
ADBI Working Paper Series No. 131. February. Development
Observations and Suggestions on Social Assistance for Migrant Workers
Research Policy Briefs Displaced by the Economic Downturn: Providing a Safety Net and
Morgan, Peter. Unregulated Entities, Products, and Markets: Challenges for Foundation for A Strong Recovery
Monitoring and Regulation. Research Policy Brief 30. August. Policy Note on Comprehensive Agricultural Development: Opportunities from
Park, Yung Chul. The Global Economic Crisis and Rebalancing Growth in East the Current Economic Crisis
Asia. Research Policy Brief 31. December. Policy Note on the Impact of the Economic Slowdown on the Public Provision
Takagi, Shinji. The Global Financial Crisis and Macroeconomic Policy Issues in of Social Services
Asia. Research Policy Brief 32. December. Policy Note on TVET Financing and Management (formerly Policy Note on
TVET Development—Guangdong and Hunan Province, PRC)
Research Papers Promoting Urban Water Security in the PRC (formerly Policy Paper on
Rocha, Bruno. At Different Speeds: Policy Complementarities and the Recovery Managing Water Shortages in Urban Areas)
from the Asian Crisis. Research Paper 74. July.
Reports
CD-ROM Biofuels in Asia
ADBI. Mainstreaming Climate Change Adaptation into Developmental Green Benches: What can the People’s Republic of China Learn from
Planning. Environment Courts of Other Countries?
Investing for the Future: Education for All in the People’s Republic of China
CENTRAL AND WEST ASIA DEPARTMENT Mongolia: Country Poverty Assessment
Awareness-Raising and Multimedia Materials Mongolia: Private Sector Assessment
CAREC Notes February 2009, Issue No. 3. Lessons for Central Asia: Experience PRC Quarterly Economic Reports
with Regional Economic Cooperation.
CAREC Transport and Trade Facilitation: Partnership for Prosperity Working Paper Series
Energy is Life: Bringing Power to Afghanistan Walker, George, Tun Lin, and Yoshiaki Kobayashi. Is Flood Insurance Feasible?
Experiences from the People’s Republic of China. ADB Sustainable
DEPARTMENT OF EXTERNAL RELATIONS Development Working Paper Series No. 5.
Zifa Wang, Tun Lin, and George Walker. Earthquake Risk and Earthquake
Awareness-Raising Multimedia Materials
Appendixes
Catastrophe Insurance for the PRC. ADB Sustainble Development Working
ADB Corporate Brochure Paper Series No. 7.
ADB Experts Video Interviews – 31
ADB Review – 12 issues ECONOMIC AND RESEARCH DEPARTMENT
Country Fact Sheets – 67
Flagship Publications
Development Asia
Asian Development Outlook 2009
In Focus Series
Asian Development Outlook Update 2009
Multimedia Features – 7
Key Indicators for Asia and the Pacific 2009
News Feature Videos on ADB Impact Stories – 71
Photo Essays – 26
Working Paper Series
Workers – Public Service Announcement
Adams, C., and D. Park. Causes and Consequences of Global Imbalances:
Reports Perspective from Developing Asia. ADB Economics Working Paper Series
2008 Annual Report No. 157. April.
PCP Annual Assessment Report 2009
114 Asian Development Bank
Aizenman, J., M. Chinn, and H. Ito. Surfing the Waves of Globalization: Asia Multiple Growth Paths. ADB Economics Working Paper Series No. 149.
and Financial Globalization in the Context of the Trilemma. March.
ADB Economics Working Paper Series No. 180. December. Maligalig, D., S. Cuevas, and A. Rosario. Informal Employment in Bangladesh.
Alba, J., D. Park, and P. Wang. Corporate Governance and Merger and ADB Economics Working Paper Series No. 155. April.
Acquisition Foreign Direct Investment: Firm-level Evidence from Japanese Niimi, Y. Gender Equality and Inclusive Growth in Developing Asia.
Foreign Direct Investment into the US. ADB Economics Working Paper ADB Economics Working Paper Series No. 186. December.
Series No. 147. February. Park, D. Aging Asia’s Looming Pension Crisis. ADB Economics Working Paper
Alba, J., D. Park, and P. Wang. The Impact of Exchange Rate on FDI and the Series No. 165. July.
Interdependence of FDI over Time. ADB Economics Working Paper Series Park, D. and G. Estrada. Are Developing Asia’s Foreign Exchange Reserves
No. 164. July. Excessive? An Empirical Examination. ADB Economics Working Paper
Alessandrini, M. Alessandrini, B. Fattouh, B. Ferrarini, and P. Scaramozzino. Series No. 170. September.
Tariff Liberalization and Trade Specialization in India. ADB Economics Park, D. and G. Estrada. Developing Asia’s Sovereign Wealth Funds and
Working Paper Series No. 177. November. Outward Foreign Direct Investment. ADB Economics Working Paper Series
Ang, A., G. Sugiyarto, and S. Jha. Remittances and Household Behavior in the No. 169. August.
Philippines. ADB Economics Working Paper Series No. 188. December. Park, D. and K. Shin. Can Trade with the People’s Republic of China be an
Bjornestad, L. Bjornestad. Fiscal Decentralization, Fiscal Incentives, and Pro- Engine of Growth for Developing Asia? ADB Economics Working Paper
Poor Outcomes: Evidence from Viet Nam. ADB Economics Working Paper Series No. 172. October.
Series No. 168. August. Park, D. and K. Shin. Saving, Investment, and Current Account Surplus in
Cuevas, S., C. Mina, M. Barcenas, and A. Rosario. Informal Employment in Developing Asia. ADB Economics Working Paper Series No. 158. May.
Indonesia. ADB Economics Working Paper Series No. 156. April. Park, D. and K. Shin. The People’s Republic of China as an Engine of Growth
Deolalikar, A., R. Hasan, and R. Somanathan. Public Goods Access and for Developing Asia?: Evidence from Vector Autoregression Models. ADB
Juvenile Sex Ratios in Rural India: Evidence from the 1991 and 2001 Economics Working Paper Series No. 175. November.
Village Census Data. ADB Economics Working Paper Series No. 167. July. Park, D. and Q. Xiao. Housing Prices and the Role of Speculation:
Felipe, J., J. S. L. McCombie, and K. Naqvi. Is Pakistan’s Growth Rate Balance- The Case of Seoul. ADB Economics Working Paper Series No. 146. January.
of-Payments Constrained? Policies and Implications for Development and Park, D., K. Shin, and J. Jongwanich. The Decline of Investment in East Asia
Growth. ADB Economics Working Paper Series No. 160. May. since the Asian Financial Crisis: An Overview and Empirical Examination.
Ha, J., Y. Kim, and J. Lee. The Optimal Structure of Technology Adoption and ADB Economics Working Paper Series No. 187. December.
Creation: Basic Research vs. Development in the Presence of Distance to Raihan, S., B. Khondker, G. Sugiyarto, and S. Jha. Remittances and Household
Frontier. ADB Economics Working Paper Series No. 163. June. Welfare: A Case Study of Bangladesh. ADB Economics Working Paper
Hasan, R. and K. Jandoc. Quality of Jobs in the Philippines: Comparing Self- Series No. 189. December.
Employment with Wage Employment. ADB Economics Working Paper Sim, B., M. de Castro, and M. Pascua. An Analysis of Revisions to Annual GDP
Series No. 148. March. Estimates of Six ADB Regional Members. ADB Economics Working Paper
Hasan, R., R. Magsombol, and J. Cain. Poverty Impact of the Economic Series No. 184. December.
Slowdown in Developing Asia: Some Scenarios. ADB Economics Working Son, H. A Cross-Country Analysis of Achievements and Inequities in Economic
Paper Series No. 153. April. Growth and Standards of Living. ADB Economics Working Paper Series
Hong, K., J. Lee, and H. Tang. Crises in Asia: Historical Perspectives and No. 159. May.
Implications. ADB Economics Working Paper Series No. 152. April. Son, H. and E. San Andres. How Has Asia Fared in the Global Crisis?
Ito, H., J. Jongwanich, and A. Terada-Hagiwara. What Makes Developing Asia A Tale of Three Countries: Republic of Korea, Philippines, and Thailand.
Resilient in a Financially Globalized World? ADB Economics Working Paper ADB Economics Working Paper Series No. 174. October.
Series No. 181. December. Son, H. Equity in Health and Health Care in the Philippines. ADB Economics
James, W. US International Trade and the Global Economic Crisis. Working Paper Series No. 171. October.
ADB Economics Working Paper Series No. 179. November. Terada-Hagiwara, Akiko. Explaining Filipino Households’ Declining Saving
Jha, S., G. Sugiyarto, and C. Vargas-Silva. The Global Crisis and the Impact on Rate. ADB Economics Working Paper Series No. 178. November.
Remittances to Developing Asia. ADB Economics Working Paper Series Vargas-Silva, C., S. Jha, and G. Sugiyarto. Remittances in Asia: Implications
No. 185. December. for the Fight against Poverty and the Pursuit of Economic Growth. ADB
Jha, S., Jha, E. Prasad, and A. Terada-Hagiwara. Saving in Asia: Issues for Economics Working Paper Series No. 182. December.
Rebalancing Growth. ADB Economics Working Paper Series No. 162. June. Zhuang, J., H. Gunatilake, Y. Niimi, M. Khan, Y. Jiang, R. Hasan, N. Khor,
Jha, S., P. Quising, and S. Camingue. Macroeconomic Uncertainties, Oil A. Lagman-Martin, P. Bracey, and B. Huang. Financial Sector Development,
Subsidies, and Fiscal Sustainability in Asia. ADB Economics Working Paper Economic Growth, and Poverty Reduction: A Literature Review. ADB
Series No. 150. April. Economics Working Paper Series No. 173. October.
Jongwanich, J. and N. Magtibay-Ramos. Determinants of Structural Changes
of Food Exports from Developing Countries. ADB Economics Working Journals
Paper Series No. 166. July. Asian Development Review Vol. 26 No. 2. December.
Appendixes
Jongwanich, J. Equilibrium Real Exchange Rate, Misalignment, and Export Asian Development Review Vol. 26 No. 1. June.
Performance in Developing Asia. ADB Economics Working Paper Series
No. 151. March.
Special Studies
Jongwanich, J. Impact of Food Safety Standards on Processed Food Exports
Diagnosing the Philippine Economy. September.
from Developing Countries. ADB Economics Working Paper Series
Nepal: Critical Development Constraints. July.
No. 154. April.
The Economics of Climate Change in Southeast Asia: A Regional Review. April.
Jongwanich, J., W. James, P. Minor, and A. Greenbaum. Trade Structure and
the Transmission of Economic Distress in the High-Income OECD Countries
to Developing Asia. ADB Economics Working Paper Series No. 161. May. INDEPENDENT EVALUATION DEPARTMENT
Joshi, K., R. Hasan, and G. Amoranto. Surveys of Informal Sector Enterprises— Reports/Reports Series
Some Measurement Issues. ADB Economics Working Paper Series No. 183. Evaluation Information Brief: Lessons from Processing and Ongoing
December. Implementation of Loan 2273-VIE(SF): Emergency Rehabilitation of
Khor, N. and I. Sebastian. Exports and the Global Crisis: Still Alive, though Calamity Damage Project
Not Quite Kicking Yet. ADB Economics Working Paper Series No. 190. Evaluation Information Brief: Lessons from the Asian Development Bank’s
December. Responses to Financial Crises
Kim, S., D. Park, and J. Park. Productivity Growth in Different Firm Sizes in the Evaluation Knowledge Brief: Greenhouse Gas Implications of ADB’s Energy
Malaysian Manufacturing Sector: An Empirical Investigation. Sector Operations
ADB Economics Working Paper Series No. 176. November. Impact Evaluation Study: Impact of Rural Water Supply and Sanitation in
Kim, Y. Jin and J. Lee. Technological Change, Human Capital Structure, and Punjab, Pakistan
Annual Report 2009 115
Special Evaluation Study: ADB Assistance for Public–Private Partnerships in Kumar, Rajiv and Manjeeta Singh. India’s Role in South Asia Trade and
Infrastructure Development Investment Integration. ADB Working Paper Series on Regional Economic
Special Evaluation Study: Asian Development Bank’s Contribution to Inclusive Integration No. 32.
Development through Assistance for Rural Roads Lee, Chee Sung and Cyn-Young Park. Beyond the Crisis: Financial Regulatory
Special Evaluation Study: ADB Support for Public Sector Reforms in the Pacific: Reform in Emerging Asia. ADB Working Paper Series on Regional
Enhance Results Through Ownership, Capacity, and Continuity Economic Integration No. 34.
Special Evaluation Study: ADB Technical Assistance for Justice Reform in Lee, Jong-Wha and Ju Hyun Pyun. Does Trade Integration Contribute to
Developing Member Countries Peace? ADB Working Paper Series on Regional Economic Integration
Special Evaluation Study: The Asian Development Bank’s Support to Gender No. 24.
and Development, Phase 1: Relevance, Responsiveness and Results to Date Madhur, Srinivasa, Ganeshan Wignaraja,and Peter Darjes. Roads for Asian
Integration: Measuring ADB’s Contribution to the Asian Highway Network.
OFFICE OF ADMINISTRATIVE SERVICES ADB Working Paper Series on Regional Economic Integration No. 37.
McKibbin, Warwick J. and Waranya Pim Chanthapun. Exchange Rate Regimes
Awareness-Raising and Multimedia Materials
in the Asia-Pacific Region and the Global Financial Crisis. ADB Working
iLink Digest Paper Series on Regional Economic Integration No. 36.
iLink Monthly Summaries for education, environment, finance, infrastructure, Menon, Jayant and Anna Melendez-Nakamura. Aging in Asia: Trends,
and regional cooperation Impacts, and Responses. ADB Working Paper Series on Regional Economic
Law Link (weekly summaries on publications on law) Integration No. 25.
Mobile abstraction of TA consultants reports on energy to serve the needs of Menon, Jayant. Managing Success in Viet Nam: Macroeconomic
the energy CoPs Consequences of Large Capital Inflows with Limited Policy Tools. ADB
New acquisitions list Working Paper Series on Regional Economic Integration No. 27.
Rao, M. Govinda. Promoting Trade and Investment in India’s Northeastern
Operational Reports Region. ADB Working Paper Series on Regional Economic Integration
eStar 1-year milestone report citing accomplishments and financial savings No. 30.
derived Rigg, Robert and Lotte Schou-Zibell. The Financial Crisis and Money Markets
Process improvements actions in vital records management programs in Emerging Asia. ADB Working Paper Series on Regional Economic
Integration No. 38.
OFFICE OF REGIONAL AND ECONOMIC INTEGRATION Warr, Peter, Jayant Menon, and Arief Anshory Yusuf. Regional Economic
Impacts of Cross-Border Infrastructure: A General Equilibrium Application
Books
to Thailand and Lao PDR. ADB Working Paper Series on Regional Economic
India 2039: An Affluent Society in One Generation (prepared by Centennial Integration No. 35.
Group)
National Strategies for Regional Integration: South and East Asian Case
PACIFIC DEPARTMENT
Studies
Pan-Asian Integration: Linking East and South Asia Awareness-Raising and Multimedia Materials
Profiles of Progress: Papua New Guinea
Awareness-Raising and Multimedia Materials
Institutions for Regionalism: Enhancing Economic Cooperation and Policy Briefs
Integration in Asia and the Pacific–A Booklet Taking the Helm: A Policy Brief on a Response to the Global Economic Crisis
Appendixes
Finding Balance: Making State-Owned Enterprises Work in Fiji, Samoa, and
Ando, Mitsuyo, Antoni Estevadeordal, and Christian Volpe Martincus.
Tonga
Complements or Substitutes? Preferential and Multilateral Trade
Kiribati Social and Economic Report 2008
Liberalization at the Sectoral Level. ADB Working Paper Series on Regional
Economic Integration No. 39. Kiribati’s Political Economy and Capacity Development
Capannelli, Giovanni and Carlo Filippini. East Asian and European Economic Pacific Economic Monitor (May, August, November issues)
Integration: A Comparative Analysis. ADB Working Paper Series on Private Sector Development Initiative Annual Report
Regional Economic Integration No. 29. Strengthening Pacific Fragile States–The Marshall Islands Example
Capannelli, Giovanni, Jong-Wha Lee, and Peter Petri. Developing Indicators Sustaining Growth: A Private Sector Assessment for Vanuatu
for Regional Economic Integration and Cooperation. ADB Working Paper What Works? Better Policies and Practices for a Better Pacific
Series on Regional Economic Integration No. 33.
Hamanaka, Shintaro. Re-considering Asian Financial Regionalism in the 1990s. REGIONAL AND SUSTAINABLE DEVELOPMENT DEPARTMENT
ADB Working Paper Series on Regional Economic Integration No. 26.
Awareness-Raising and Multimedia Materials
Hamanaka, Shintaro. The Building Block versus Stumbling Block Debate of
ADB/OECD Asia-Pacific Newsletter No. 12
Regionalism: From the Perspective of Service Trade Liberalization in Asia.
ADB Regional Climate Change Responses: Directions for Action, Invitations for
ADB Working Paper Series on Regional Economic Integration No. 28.
Partnerships
Kim, Soyoung, Jong-Wha Lee, and Cyn-Young Park. Emerging Asia:
Annual Report on the Governance Cooperation Fund
Decoupling or Recoupling. ADB Working Paper Series on Regional
Economic Integration No. 31. Beyond: Stories and Sounds from ADB’s Region
116 Asian Development Bank
Fast and Effective Change Management Radio Drama for HIV/AIDS Prevention Among Ethnic Groups Across the GMS
Five Whys Technique, The Southeast Asian Gender and Development (SEAGEN WAVES) Newsletter
From Strategy to Practice
Glossary of Knowledge Management Journal
Growing Managers, Not Bosses Journal of Greater Mekong Subregion Development Studies, Volume 4
Harnessing Creativity and Innovation in the Workplace
Improving Sector and Thematic Reporting Reports
Leading in the Workplace Background Note on the Justice Sector of the Philippines
Learning and Development for Management Building a Sustainable Energy Future: The Greater Mekong Subregion
Learning from Evaluation Migration In the Greater Mekong Subregion: A Background Paper for the
Learning in Strategic Alliances Fourth Greater Mekong Subregion Development Dialogue
Learning Lessons with Knowledge Audits Poverty in the Philippines: Causes, Constraints, and Opportunities
Managing by Walking Around Process Map on the Criminal Prosecution of Tax Evasion in the Philippines
Managing Virtual Teams Protecting the World’s Oceans: From Vision to Action
Monthly Progress Notes Water: Vital for Viet Nam’s Future
Most Significant Change Technique, The
Overcoming Roadblocks to Learning Strategy, Policy, and Administrative Documents
Primer on Organizational Culture, A Greater Mekong Subregion: Energy Road Map for Expanded Cooperation in
Primer on Organizational Learning, A the Energy Sector
Roots of an Emerging Discipline, The Greater Mekong Subregion: Transport Strategy for Railway
SCAMPER Technique, The Indonesia: Private–Public Partnership on Food Fortification
Social Network Analysis Lao People’s Democratic Republic: Country Strategy and Program Midterm
Staff Profile Pages Review 2007–2011
Understanding and Developing Emotional Intelligence Lao People’s Democratic Republic: Governance Risk Assessment
Understanding Complexity Viet Nam: Country Strategy and Program 2007–2010 Midterm Review
Value Cycles for Development Outcomes
Wearing Six Thinking Hats Training and Instructive Materials
Working in Teams Economics and Trade in Goods: An Introduction An ADB-ITD Training Module
Writing Weblogs for the Greater Mekong Subregion
Knowledge Solutions Compendium (Issues 1–38) Trade and Investment in Services: An ADB-ITD Training Module for the Greater
Mekong Subregion
Overview of NGOs/Civil Society—Afghanistan
World Trade Organization Trade Remedies: A Tool Kit
Overview of NGOs/Civil Society—India
Overview of NGOs/Civil Society—Pakistan
Working Papers
Sector Governance Guidance Note: Electricity Sector Risk Assessment
Frielink, Barend and Mylene Buerano. The Contribution of ADB to the ASEAN
Sector Governance Guidance Note: Urban Water Supply Sector Risk
Economic Community Blueprint. ADB Southeast Asia Working Paper Series
Assessment
No. 3. October.
Sourcebook to Assist the Preparation of Governance Risk Assessments
Roland-Holst, David and Barend Frielink. Trade and Growth Horizons for Nusa
Strategies for Business, Government, and Civil Society to Fight Corruption in
Tenggara Timur and Timor-Leste. ADB Southeast Asia Working Paper Series
Asia and the Pacific
No. 4. November.
Strengthening the Impact of Asia’s NGO Community: Maternal, Newborn,
Trace, Keith, Barend Frielink, and Denis Hew. Air Connectivity in Archipelagic
and Child Health (MNCH) Interventions—Immunization, Asia NGO
Southeast Asia: An Overview. ADB Southeast Asia Working Paper Series
Workshop Proceedings
No. 2. September.
Trace, Keith, Barend Frielink, and Denis Hew. Maritime Connectivity in
Working Paper Series Archipelagic Southeast Asia: An Overview. ADB Southeast Asia Working
Walker, George, Tun Lin, Yoshiaki Kobayashi. Is Flood Insurance Feasible? Paper Series No. 1. August.
Experiences from the People’s Republic of China. ADB Sustainable
Development Working Paper Series No. 5. April.
Wan, Guanghua and Ruth Francisco. How is the Global Recession Impacting
on Poverty and Social Spending: An Ex Ante Assessment Methodology
with Applications to Developing Asia, ADB Sustainable Development
Working Paper Series No. 8. August.
Appendixes
Wan, Guanghua and Ruth Francisco. Why is Access to Basic Services Not
Inclusive? A Synthesis with a Special Focus on Developing Asia. ADB
Sustainable Development Working Paper Series No. 6. April.
Wang, Zifa, Tun Lin, and George Walker. Earthquake Risk and Earthquake
Catastrophe Insurance for the People’s Republic of China. ADB Sustainable
Development Working Paper Series No. 7. June.
APPENDIX 15
Evaluation Results for Sovereign Operations
Table A15.3
Percentage of Sovereign Operations (Projects/Programs) Deemed Successful by Source of Funds
100
90
80
Success Rate (%)
70
60
50
40
30
20
10
0
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Year of Approval
Total Asian Development Ordinary capital
Fund resources
Notes:
Based on completed projects/programs evaluated from 1973 to 2009.
Project/program implementation: 4–7 years.
Completion report: 1–2 years after completion.
Project/program evaluation: 3 years or more after completion.
Data from 2002 are not included due to small sample size (less than 30).
Figures for approval years 2000 to 2001 may change as additional projects/programs are completed and evaluated.
Appendixes
120 Asian Development Bank
Sri Lanka Resident Mission Uzbekistan Resident Mission North American Representative Office
49/14 15 Galle Road 1 A. Khodjaev Street 815 Connecticut Avenue, NW, Suite 325
Colombo 3, Sri Lanka Tashkent 100027, Uzbekistan Washington, DC 20006, USA
Tel +94 11 238 7055 Tel +998 71 140 1920/25 Tel +1 202 728 1500
Fax +94 11 238 6527 Fax +998 71 140 1976 Fax +1 202 728 1505
adbslrm@adb.org adburm@adb.org naro@adb.org
www.adb.org/slrm www.adb.org www.adb.org/naro
ADB local 5507/5533 ADB local 5508 ADB local 5516
Appendixes
122 Asian Development Bank
GLOSSARY ABBREVIATIONS
B-loan. A tranche of a direct loan nominally advanced by ADB – Asian Development Bank
ADB, subject to eligible financial institutions’ taking fund- ADF – Asian Development Fund
ed risk participations within such a tranche and without CoP – community of practice
recourse to ADB. It complements an A-loan funded by CTL – Controller’s Department
ADB. GMS – Greater Mekong Subregion
ICT – information and communication technology
Direct value-added cofinancing. Cofinancing with active IED – Independent Evaluation Department
coordination and formal agreements among financing OAI – Office of Anticorruption and Integrity
partners that bring about defined client benefits, includ- OAS – Office of Administrative Services
ing contractual commitments by ADB (such as for credit OCR – ordinary capital resources
enhancement, syndication, or financial administration) to OIST – Office of Information Systems and Technology
facilitate mobilization, administration, or participation in PSOD – Private Sector Operations Department
cofinancing.